|
|
|
CITY OF BAKERSFIELD
CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2019
Prepared by the Department of Finance
Randy McKeegan, Finance Director
|
|
On the Cover
Kit Fox Mural
3200 Buck Owens Blvd
Photo by Gilbert Vega
|
|
Comprehensive Annual Financial Report
Year Ended June 30, 2019
INTRODUCTORY SECTION PAGE
Table of Contents i
Letter of Transmittal iii
GFOA Certificate of Achievement viii
Organizational Chart viii
Elected and Administrative Officers x
FINANCIAL SECTION
Independent Auditors' Report 1
Management Discussion and Analysis 4
Basic Financial Statements
Statement of Net Position 21
Statement of Activities 23
Governmental Funds:
Balance Sheet 27
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position 29
Statement of Revenues, Expenditures and Changes in Fund Balances 31
Reconciliation of the Governmental Funds Statement
of Revenues, Expenditures and Changes in Fund Balances
to the Government-Wide Statement of Activities 33
Proprietary Funds:
Statement of Net Position 35
Statement of Revenues, Expenses and Changes in Fund Net Position 37
Statements of Cash Flows 39
Fiduciary Funds:
Statement of Fiduciary Net Position 45
Statement of Changes in Fiduciary Net Position 46
Notes to the Financial Statements 48
Required Supplementary Information:
Budgetary Information 106
Budgetary Comparison Schedule for the General Fund 107
Budgetary Comparison Schedule for the Transient Occupancy Taxes Fund 108
Budgetary Comparison Schedule for the Community Development Block Grant Fund 108
Budgetary Comparison Schedule for the Gas Tax & Road Fund 109
Defined Pension Plan - Schedules of Changes in Net Position Liability and Related Ratios &
Schedules of Plan Contributions 110
Other Post-Employment Benefits (OPEB) Plan - Schedule of Changes in City's
Net OPEB Liability and Related Ratios and Schedule of OPEB Contributions 113
i
|
|
Comprehensive Annual Financial Report
Year Ended June 30, 2019
PAGE
Supplementary Information:
Balance Sheet - General Fund 120
Schedule of Revenues by Function - General Fund - Budget & Actual 121
Schedule of Expenditures by Division - General Fund - Budget & Actual 122
Special Revenue Funds:
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
-Budget & Actual 125
Debt Service Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balance
-Budget & Actual 131
Capital Projects Funds:
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
-Budget & Actual 133
Internal Service Funds:
Combining Statement of Net Position 136
Combining Statement of Activities and Changes in Net Position 137
Combining Statement of Cash Flows 138
Fiduciary Funds:
Statement of Changes in Assets and Liabilities - Fiduciary Funds Agency 139
Combining Statement of Fiduciary Net Position
-Private Purpose Trust Funds 140
Combining Statement of Fiduciary Net Position
-Pension & Other Employee Benefit Trust Funds 141
Combining Statement of Changes in Fiduciary Net Position
-Private Purpose Trust Funds 142
Combining Statement of Changes in Fiduciary Net Position
-Pension & Other Employee Benefit Trust Funds 143
Non-Major Governmental Funds
Combining Balance Sheet 144
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 146
Long-term Debt Recorded in Private Purpose Trust Fund 148
ii
|
|
Comprehensive Annual Financial Report
Year Ended June 30, 2019
PAGE
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years 152
Changes in Net Position - Last Ten Fiscal Years 154
Fund Balances of Governmental Funds - Last Ten Fiscal Years 158
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 160
Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years 164
Principal Property Taxpayers - Current Year and Nine Years Ago 165
Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 166
Property Tax Rates/Direct and Overlapping Governments - Last Ten fiscal Years 168
Property Taxes Levies and Collections - Last Ten Fiscal Years 170
Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 171
Taxable Sales By Market Groups - Last Ten Fiscal Years 172
Sales Tax Revenue Payers By Industry - 2018 and Ten Years Ago 174
Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years 176
Ratio of Outstanding Debt by Type - Last Ten Fiscal Years 178
Direct and Overlapping Debt as of June 30, 2019 180
Computation of Legal Debt Margin 181
Pledged - Revenue Coverage - Last Ten Fiscal Years 182
Demographic and Economic Statistics - Last Ten Fiscal Years 183
Principal Employers - Current Year and Nine Years Ago 184
Full-time Equivalent City Government Employees by Function - Last Ten Fiscal Years 186
Property Value, Construction and Bank Deposits - Last Ten Calendar Years 188
Operating Indicators by Function - Last Ten Fiscal Years 190
Capital Asset Statistics by Function - Last Ten Fiscal Years 192
Schedule of Insurance in Force 194
iii
|
|
December 20, 2019
Honorable Mayor, City Council, City Manager and Citizens of Bakersfield:
I am pleased to submit the City of Bakersfield's (the "City") Comprehensive Annual Financial Report (ACFR) for the year ended June 30, 2019 in accordance with the requirements of our Municipal Code which states that a complete financial statement and report be prepared at the end of each fiscal year (Section 2.08.020F). This report was prepared by the City's Finance Department, which assumes responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures. Because the cost of internal control should not exceed anticipated benefits the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. To the best my knowledge and belief, the enclosed data is accurate in all material aspects and is reported in a manner that presents fairly the financial position and results of operations of the City.
The accompanying financial statements of the City have been prepared in conformity with U.S. generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB).
Brown Armstrong Accounting Corporation, a firm of licensed certified public accountants, performed the annual independent audit. The goal of the audit was to provide reasonable assurance that the basic financial statements of the City are free of material misstatement. The independent auditor concluded, based upon the audit, that the City’s financial statements for the fiscal year ended June 30, 2019, are fairly stated in conformity with GAAP.
The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair representation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City’s separately issued Single Audit Report and may be obtained from the City’s website.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Bakersfield’s MD&A can be found immediately following the report of the independent auditors, which begins at page 1 of the financial section.
GENERAL BACKGROUND
The City of Bakersfield is located approximately one hundred miles north of Los Angeles in the southern San Joaquin Valley. The City maintains an incorporated area of 151 square miles and has an estimated population of 389,211 as of January 1, 2019.
The City of Bakersfield is a Charter City that offers a full range of City services including:
• Fire and Police Protection
• Streets and Infrastructure Maintenance
• Planning and Community Development
• Parks and Recreation Services
• River & Agricultural Water and Domestic Water Services
iv
|
|
• Municipal Airpark - General Aviation
• Refuse Collection
• Wastewater Treatment
As such, this report includes the financial activities of the City of Bakersfield and the Bakersfield Successor Agency. A more detailed discussion of the reporting entity is provided in the notes to the financial statements.
MAJOR INITIATIVES
The transportation projects associated with Thomas Roads Improvement Program (TRIP) continue to progress through the various phases of environmental, design, land acquisition and construction. The TRIP program uses a combination of local funds, Transportation Impact Fees, and State and Federal road funds, which includes approximately $570 million of Federal earmark funds approved by Congress in 2005.
The 2018-19 capital budget included over $170 million of funding for the TRIP projects as outlined below:
∙Centennial Corridor
(Construction) $ 163,022,000
∙24th Street Widening
(Construction) $ 2,500,000
∙Stockdale/Enos Lane Roundabout
(Construction) $ 3,500,000
∙West Beltway
(Right of Way) $ 1,675,000
The City had three major the TRIP projects under construction during the fiscal year including the 24th Street Widening, the Centennial Corridor Kern River Bridge Improvements, the Centennial Corridor Belle Terrace Bridge reconstruction and the Beltway Operational improvements to State Routes 58 & 99. Supplemental grant awards at both the State and Federal level have resulted in the remaining projects planned to be constructed in the TRIP program to be fully funded, requiring no additional financing or borrowing.
FACTORS AFFECTING FINANCIAL CONDITION
Local Economy and Local Budget Issues - The local economy for the City of Bakersfield shows signs of continued recovery in various areas, including the oil industry, but questions remain as to the sustainability of that growth. Property tax revenues grew by 5.4% in fiscal year 2018-19 and are estimated to increase by an additional 4.0% in fiscal year 2019-20. The continued uncertainty in existing revenue streams and the need for expanded services prompted the City to initiate a local sales tax measure to increase the City rate by 1 percent. The district add-on tax, called the Public Safety and Vital Services (PSVS) measure, was approved in November 2018 and went into effect April 1, 2019. While the City did not receive a full year of PSVS revenue it did result in an additional $17 million in sales tax funds over and above the standard tax (Bradley -Burns). The PSVS funds are budgeted and accounted for separately within a sub-fund of the General Fund and have a special oversight committee made up of nine City residents. The funds are to be used to meet thirteen specific priorities (as identified in the ballot measure) to address top community priorities including enhancing public safety, reducing homelessness and bolstering economic development activities. It is anticipated that this new stream of revenue will double the sales tax revenue available to the City. In addition to the increase from the PSVS sales tax, the Bradley-Burns sales tax revenues increased by 7.1% in fiscal year 2018-19 which was due to the continued growth in the local economy previously mentioned. Also, as previously mentioned, the uncertainty of the level of growth has resulted in a slight budgeted increase of 2.0% in the 2019-20 fiscal year. With these positive trends pointing to a recovery it again needs to be emphasized that there still is a level of uncertainty in the local economy and that the PSVS fund's are designated for the specific goals identified by the voter approved measure.
The City Council (the Council) continues to support a conservative approach in adopting our budget for 2019-20. The Council has increased the City’s cash basis reserve by $13 million using the PSVS funds for a total reserve of $26.4 million. Those reserves, along with a $3.5 million facilities reserve fund, provide an improved level of protection for the City. The Council continued to fund the City’s Other Post-Employment Benefits (OPEB) costs for retiree medical benefits, maintaining the City of Bakersfield’s position as one of the few entities in California that are making serious progress toward fully funding this long-term obligation.
Retirement costs continue to escalate for all employee groups and over the next several years are expected to increase by 67% ($28.9 million) by fiscal year 2024-25. This dramatic rise is a result of California Public Employees’ Retirement System’s (CalPERS) changes to its actuarial methodology and their lower than projected earnings in
v
|
|
previous years. These methodology changes and resulting rate increases will have a significant impact on retirement costs for the City. Actual CalPERS earnings over the past five years have been 2.4%, 0.6%, 11.2%, 8.6% and 6.7% respectively. While the recent improvement in returns is a positive sign, the effects of annual investment increases are smoothed over a 30-year period so significant reductions in costs are not expected in the near-term. CalPERS estimates the impact of the changes and returns will increase our annual retirement benefit costs by approximately $3.0 million to $4.0 million per year for the next five years.
Long-Term Financial Planning - The City of Bakersfield continues to look forward in meeting our long-term financial and operating needs. The increasing costs of retirement are of particular concern and continue to be closely examined by the City. As the City grows both in population and in geographic area, there will be a continued need to evaluate opportunities to become more efficient and effective in our efforts to serve our community.
The City Council adopted Resolution 91-19 on June 28, 2019 to create a more substantial reserve to help mitigate potential financial downturns as well as create potential avenues to address the increasing concern regarding the growing unfunded pension liabilities. This resolution created a five-year plan that would increase the General Fund reserve equal to two months of operational costs and begin to fund a Section 115 Pension Rate Stabilization Fund. This plan is subject to the availability of funds and does not lock the City into any contributions that would be detrimental to the operations necessary to serve the needs of the residents of Bakersfield.
Accounting System and Internal Controls - The City's accounting system is organized and operated on a fund basis with each fund treated as a distinct self-balancing accounting entity. Various funds utilized by the City of Bakersfield are fully described in Note 1 of Notes to the Basic Financial Statements. The City's accounting records for general governmental operations are maintained on a modified accrual basis of accounting, whereby revenues are recognized when measurable and available and expenditures are recognized when materials and services are received. Accounting records for the enterprise and internal service funds are recorded on an accrual basis of accounting, whereby revenues are recognized when earned and expenses are recognized when incurred.
In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (a) the cost of a control should not exceed the benefits likely to be derived and (b) the evaluation of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the framework described previously. The City Finance department believes that these internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. However, the City recognizes that even sound internal controls have inherent limitations. Internal controls must be reviewed to ensure that the City’s operating policies and procedures are being adhered to and that the controls are adequate to assure accurate and reliable financial reporting and to safeguard the City’s assets.
Budgetary Controls - The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Project length financial plans are adopted for the capital projects funds. The level of budgetary control is established at the fund level. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Unencumbered amounts lapse at year-end. However, encumbrances and certain capital projects are re-appropriated as part of the following year's budget. The 2018-19 City of Bakersfield appropriation limit established as required by state statute was $408,504,776.
Cash Management - The City maintains a cash and investment pool that is available for use by all funds, except the Fire Pension Trust Fund. Each fund type's portion of this pool is displayed on the combined balance sheet as cash and short-term investments. The deposits and investments of the Fire Relief and Pension Trust Fund are held separately from other City funds.
vi
|
|
The City Council has adopted an investment policy in accordance with California Government Code Sections 53607 and 53646, with a goal to minimize credit and market risks while maintaining a competitive yield on its portfolio. The City is also governed by State statutes authorizing the City to invest in bonds or other evidences of indebtedness of the U.S. Government or any of its agencies and instrumentalities, repurchase agreements and bankers’ acceptances. The pension trust investments are administered separately under Municipal Code Section 2.92, which is within state guidelines.
OTHER INFORMATION
Independent Audit - The City Charter requires an annual audit by independent certified public accountants. The City Council also adopted a policy regarding auditor rotation that encourages competitive bidding on a five-year cycle. The accounting firm of Brown Armstrong Accountancy Corporation was selected by the City Council in 2017 to perform the annual audit for the 2016-17 fiscal year. This audit year (2018-19) is the third year of the five-year agreement with this firm.
Awards - The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Bakersfield for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2018, marking the thirty-eighth consecutive year Bakersfield has received the GFOA certificate. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.
A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to Certificate of Achievement Program requirements and we are submitting it to GFOA to determine its eligibility for another certificate.
Additionally, the City received the Distinguished Budget Presentation Award for the fiscal year beginning July 1, 2018 from the GFOA. The Distinguished Budget Presentation Award judges a government's budget document for compliance with the guidelines established by the National Advisory Council on State and Local Budgeting and best practices of the GFOA.
Acknowledgments - The preparation of this report on a timely basis could not be accomplished without the efficient services of the entire staff of the Finance Department. I should like to express my appreciation to all members of the Department who assisted and contributed to its preparation. I would also like to thank the Mayor, City Council and the City Manager for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner.
Respectfully,
Randy McKeegan
Finance Director
vii
|
|
viii
|
|
ix
|
|
CITY OF BAKERSFIELD
June 30, 2019
City Council
Karen K. Goh .......................................................................................................................Mayor
Willie Rivera ........................................................................................................Member/Ward 1
Andrae Gonzales ...................................................................................................Member/Ward 2
Ken Weir .............................................................................................................Member/Ward 3
Bob Smith ......................................................................................................Vice Mayor/Ward 4
Bruce Freeman ....................................................................................................Member/Ward 5
Jacquie Sullivan ....................................................................................................Member/Ward 6
Chris Parlier ..........................................................................................................Member/Ward 7
Administrative Personnel
Alan Tandy ............................................................................................................City Manager
Virginia Gennaro ...................................................................................................City Attorney
Phil Burns (Interim) .................................................................... Development Services Director
Randy McKeegan ...............................................................................................Finance Director
Anthony Galagaza........................................................................................................Fire Chief
Lyle Martin ..............................................................................................................Police Chief
Nick Fidler ..............................................................................................Public Works Director
Dianne Hoover ...............................................................................Director Recreation & Parks
Art Chianello ....................................................................................Water Resources Manager
x
|
|
1
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
This discussion and analysis of the City of Bakersfield’s (City) financial performance provides an overview of the City’s financial activities for the fiscal year ended June 30, 2019. We encourage readers to consider the information presented here in conjunction with the accompanying letter of transmittal, the basic financial statements, and the accompanying notes to those financial statements.
FINANCIAL HIGHLIGHTS
∙The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $2.0 billion (net position).
∙The City’s total net position increased by $438.2 million over the prior fiscal year. This increase is attributable to a $1.8 million decrease in restricted net position and a $6.8 million increase in unrestricted net position, offset by a $35.0 million increase in capital assets investment. Prior year information presented in this section does not take into account restatements made to fiscal year 2017-18 balances for prior period adjustments (see Note 23).
∙As of the close of the current fiscal year, the City's Governmental Funds reported combined ending fund balances of $186.5 million, an increase of $12.7 million in comparison with the prior year. Amounts available for spending include restricted, committed, assigned and unassigned fund balances. Of this amount, $19.0 million is restricted by law or externally imposed requirements, $110.5 million is committed for specific purposes, $51.4 million is assigned and $4.7 million is unassigned and available.
∙Available fund balance for the General Fund increased $15.6 million to $54.6 million, which equates to 26.3% of total General Fund expenditures for the year.
∙The City's long-term debt showed an increase of $15.0 million during the current fiscal year.
4
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statements present the financial picture of the City from the economic resources measurement focus using the accrual basis of accounting. They present governmental activities and business-type activities separately. Additionally, certain eliminations have occurred as prescribed by the Governmental Accounting Standards Board (GASB) statements in regards to interfund activity, payables and receivables.
The Statement of Net Position and the Statement of Activities provide information about the City as a whole and its activities through the fiscal year. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid.
These two statements report the City's net position and changes in it. Net position is the difference between assets deferred outflows of resources, liabilities, and deferred inflows of resources providing a measurement of the City's financial health. Over time, increases or decreases in the City's net position can be an indicator of whether its overall financial health is improving or deteriorating. Other factors to consider are changes in the City's property tax base and sales tax base. The government-wide financial statements do not include the fiduciary funds, which comprise the private purpose trust funds, pension trust funds, and agency funds. Resources in the fiduciary funds are generally not available to support the City’s own programs.
In the Statement of Net Position and the Statement of Activities, we separate the City activities as follows:
Governmental activities - Most of the City's basic services are reported in this category, including the General Government, Police, Fire, Public Works, Recreation & Parks and Development Services. These activities are generally financed by property and sales taxes, user fees, interest income, franchise fees, and state and federal shared revenues and grants.
Business-Type activities - The City charges a fee to customers to cover all or most of the cost of certain services it provides. The City's Water, Wastewater, and Refuse Collection systems along with the Municipal Airport and Offstreet Parking activities are reported in this category.
5
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
FUND FINANCIAL STATEMENTS
A fund is a specific grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities and objectives. The fund financial statements provide detailed information about the most significant funds, not the City as a whole. Some funds are required to be established by State law and by bond covenants. Management establishes many other funds to help control and manage financial resources for particular purposes, or to show that the City is meeting legal responsibilities when using certain taxes, grants, and other revenue.
These financial statements include statements for each of the three categories of activities – governmental, proprietary and fiduciary. The governmental activities are prepared using the current financial resources measurement focus and modified accrual basis of accounting. The proprietary activities are prepared using the economic resources measurement focus and the accrual basis of accounting. The fiduciary activities are agency funds that also use the economic resources measurement focus but only report a balance sheet. Reconciliation of the Governmental Fund Financial Statements to the Government-Wide Financial Statements are provided to explain the differences created by the integrated approach.
Governmental Funds - Most of the City's basic services are reported in governmental funds, which focus on the flow of resources into and out of those funds with the balances remaining at year-end available for appropriation. These funds are reported using the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The Governmental Fund financial statements focus on near-term inflow and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements. To facilitate comparisons, the differences of results in the Governmental Fund financial statements to those in the Government-Wide financial statements are explained in a reconciliation schedule following the Governmental Fund financial statement.
Proprietary Funds - Proprietary Funds are used to report services the City charges for, whether to external customers or units within the City. Proprietary Funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The City's Enterprise Funds report the same functions as the business-type activities reported in the Government-Wide financial statements, but provide more detail and additional information, such as cash flows. The City uses Internal Service Funds (the second component of Proprietary Funds) to report activities that provide supplies and services for the City's other programs and activities. This includes the City's Self-Insurance and Equipment Management Funds. These services primarily benefit governmental rather that business-type functions so a majority of the related operation costs are included with the governmental activities in the Government-Wide financial statements.
Fiduciary Funds - The City is the trustee, or fiduciary, for certain funds held on behalf of various third parties. The City's fiduciary activities are reported in separate Statements of Fiduciary Net Position. These activities are excluded from the City's other financial statements because these resources are not available to support the City's programs or operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.
NOTES TO THE FINANCIAL STATEMENTS
The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the Government-Wide and Fund financial statements. The notes can be found starting on page 48 of this report.
OTHER INFORMATION
In addition to the basic financial statements and accompanying notes, this report also presents certain “Required Supplementary Information” concerning the City's progress in funding its obligation to provide pension benefits and other post-employment benefits (OPEB) to its employees and budgetary comparison schedules for the General Fund and Special Revenue Major Funds. This information can be found starting on page 106 of this report.
6
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As previously noted, net position may serve over time as a useful indicator of a government’s financial position. In the current year, the City's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $2.0 billion at the close of the reporting period, which is a $0.4 million decrease, or 11%, in comparison with the prior year.
The largest portion of the City’s net position relates to its net investment in capital assets of $2.0 billion (e.g., land, buildings, machinery, infrastructure and equipment), less any related debt used to acquire those assets that is still outstanding. These capital assets are used to provide services to citizens; as such, these assets are not available for future expenditures. The City’s net investment in capital assets is reported net of related debt, though it should be noted that the resources needed to repay this debt must be provided from other sources as the capital assets themselves cannot be used to service this debt.
A small portion of the City’s net position, $39.2 million (2.0% of the total), represents resources that are subject to external restrictions on how they may be used.
As in the prior year, the City is able to report positive balances in both categories of net position, whether for the City as a whole or for its separate Governmental and Business-type activities.
The following table presents the components of the government-wide Statement of Net Position at the end of the fiscal year for both 2018 and 2019. The governmental and business-type activities columns reflect amounts that have been restated in this financial report. Note 23 explains any prior period adjustments that changed net position.
|
|
City of Bakersfield - Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Outflows of Resources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities
outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Inflows of Resources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment in capital assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
Governmental Activities – Total assets for governmental activities increased by $33.0 million, with current and other assets in governmental activities increasing by $17.4 million and a capital assets increase of $15.7 million. Total liabilities decreased by $3.5 million, with other liabilities increasing by $4.5 million and long-term liabilities decreasing by $8.0 million.
Of the $19.9 million increase in governmental activities total net position, unrestricted net position increased by $6.9 million, net investment in capital assets increased by $14.8 million and restricted net position decreased by $1.8 million. The decrease in unrestricted net position stems primarily from the continued rise is pension liabilities.
Business-Type Activities – Total assets for business-type activities increased by $11.5 million, with current and other assets decreasing by $1.0 million and a $12.4 million increase in capital assets. Total liabilities decreased by $11.8 million, with other liabilities decreasing by $4.0 million and long-term liabilities also decreasing by $7.8 million. Total net position for business-type activities increased by $20.0 million. Of that amount, net investment in capital assets increased by $20.1 million. Restricted net position remained constant and unrestricted net position decreased by only $0.1 million. The overall increase in net position is the result of completed improvement projects in the Wastewater, Refuse and Agriculture Water funds offset by the continued increases in pension related liabilities and the recording of other post-employment benefit liabilities.
Change in Net Position of the City
The following table presents the government-wide changes in net position for both 2018 and 2019. The City’s total revenues of $508.4 million were more than expenses of $467.0 million for an increase in net position before transfers & other items of $41.4 million. The governmental and business-type activities columns reflect amounts that have been restated in this financial report. Note 23 explains any prior period adjustments that changed net position.
|
|
City of Bakersfield - Changes in Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating grants and
contributions
|
|
|
|
|
|
|
Capital grants and
contributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grants and contributions not
restricted to specific programs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
|
|
City of Bakersfield - Changes in Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net position before
transfers & other items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extraordinary gain from litigation settlement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Position - Beginning of
Year (as restated)
|
|
|
|
|
|
|
Net Position - End of Year
|
|
|
|
|
|
|
Governmental Activities – The results in governmental activities caused an increase in the City’s net position by $357.0 million during the year. In the graph below, the difference between the program revenue and expenses by activity illustrates the amount each respective activity is supported by program revenues. Public Safety and Recreation and Parks service delivery costs exceeded program revenues by $138.0 million and $0.7 million, respectively. Public Safety programs rely heavily on taxes to support their operations whereas Recreation and Parks relies on both taxes and charges for services to support their operations. This fiscal year Public Works service delivery costs exceeded program revenues by $30.3 million because a significant portion of its services are also tax supported.
9
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
Total expenses in Governmental Activities had a net decrease of $16.7 million from the previous fiscal year for an overall 4.7% decrease. The largest increases were in Public Safety – Police and Public Safety – Fire, which increased by $1.3 million and $2.0 million, respectively, and in General Government with an increase of $1.4 million. These increases are primarily related to increases connected to California Public Employees' Retirement System (CalPERS) rates in the current year. These changes were offset by a decrease of $19.1 million in Public Works, which is primarily due to less expenditures incurred from capital improvement projects.
10
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
The taxes category is the largest revenue source for governmental activities, amounting to $179.7 million or 50.3% of total revenues. Capital grants and contributions is also a significant revenue source for the City’s governmental activities, amounting to $78.7 million or 22.0% of total revenues. The third most significant sources of revenue is charges for services, amounting to $57.5 million or 16.1% of total revenues.
Governmental Activities Revenues decreased $24.8 million which is a 7.5% decrease compared to the previous fiscal year. This decrease is due primarily to a 15.0%, or $27.4 million, increase in General Revenues, offset by a 1.7%, or $2.5 million, decrease in Program Revenues.
General Revenues - Sales tax revenues increased by 30.8%, or $22.3 million, while property taxes increased by 4.7%, or $3.8 million. The primary reason for this increase is from the Public Safety and Vital Services (PSVS) district tax which is a new source of revenue that was approved by residents in November 2018. There has also been a slight recovery in general sales tax revenue related to recent improvements in the oil industry with its related impacts on the local economy and an improvement in consumer confidence.
Program Revenues - Capital Grants and Contributions decreased by $6.8 million due to a reduction in special projects funded in Public Works compared to the prior year. The most significant reduction is related to the Thomas Roads Improvement Program (TRIP) projects which included less activity related to construction and property acquisition when compared to the previous year. Operating Grants and Contributions increased $2.2 million with the majority of the increase due to more entitlement funds received from the Department of Housing and Urban Development in the current year and an increase in State grants received to address the homelessness issues within the City.
11
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
Business-Type Activities – The City operates six Enterprise Funds that offer wastewater services, refuse collection, river & agricultural water, domestic water to City residents, downtown parking and a municipal airport.
Business-type activities increased the City’s net position by $81.2 million during the current year. The chart above compares total program revenues and expenses.
Program revenues exceeded program expenses in Wastewater Treatment by $6.9 million, Refuse Collection by $2.4 million, River & Agricultural Water by $5.3 million, and Domestic Water by $4.2 million These increases were offset slightly by program expenses exceeding program revenues in both the Airpark and Offstreet Parking funds by $156 thousand in total.
Total expenses increased by $3.3 million (2.6%) over the prior year.
The following chart illustrates the distribution of business-type revenues by category. The City’s business-type activities rely heavily on charges for services to fund their operations, making up 83.2% of total revenues. Capital grants and contributions is the second largest revenue source at 7.9% of total revenues.
12
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
Business-Type activities program revenues increased by $13.2 million, 9.9%, over the prior year. The majority of this can be attributed to an increase in Refuse Collection service revenue of $3.2 million which was due to rate increases and additional residential service customers. There were also increases in revenue in Domestic Water of $2.8 million, which was also connected to an increase in rates, and $2.7 million in River & Agricultural Water, for a large one-time sale of surplus water supplies. An increase in the Wastewater Treatment revenue was primarily connected to a rise in capital contributions of $5.9 million from more development in the area and consequently increases in related infrastructure added in the current year for that activity.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
A fund is created and segregated for the purpose of carrying out specific activities or attaining specific objectives in accordance with special regulations, restrictions, or limitations. Activity not required to be reported in a separate fund is included in the General Fund.
Governmental Funds - The focus of the City’s Governmental Funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the City’s available resources as it represents the portion of fund balance which is not limited to use for a particular purpose by an external party, City management or City Council.
As of the end of the current fiscal year, the City’s Governmental Funds reported combined ending fund balances of $186.5 million, an increase of $12.7 million in comparison with the prior year. The components of total fund balance are as follows (for more information see Note 14 – Fund Balances):
∙Nonspendable fund balance, $1.0 million, are amounts that are not spendable in form, or are legally or contractually required to be maintained intact, and are made up of prepaid expenses and deposits.
13
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
∙Restricted fund balance, $19.0 million, consists of amounts with constraints put on their use by external creditors, grantors, contributions, laws, regulations or enabling legislation. Examples of restrictions on funds are those for (1) $12.9 million for the purpose of the fund (i.e., Gas Tax and Road projects), (2) $2.2 million from the Redevelopment Successor Agency Housing Fund for projects and (3) $2.9 million for traffic safety projects.
∙Committed fund balance, $110.5 million, are amounts for specific purposes determined by the Bakersfield City Council, such as funds collected from fees paid to mitigate the traffic impacts to the regional circulation system of $51.6 million and funds set aside by City Council in the General Fund for cash basis/emergency reserves of $26.5 million.
∙Assigned fund balance, $51.4 million, for funds set aside by management for specific purposes. Amounts include $28.0 million set aside for capital projects and $1.0 million for the fund purposes related to transient occupancy fees, and $19.8 million for appropriations for next year’s budget.
∙Unassigned fund balance, $4.7 million, represents the residual classification for the City’s General Fund.
General Fund: The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the General Fund’s total fund balance increased by 40.0%, or $15.6 million from $39.5 million to $54.6 million. The following detail of changes from the prior year explains this change in fund balance for the year:
∙Total operating revenues increased by $27.6 million (13.9%). Property Tax revenue increased by $4 million due to continuation of higher assessed values within the City limits. Sales Tax revenue had the most significant increase with the new PSVS district tax adding $17.1 million. The base (Bradley-Burns) sales tax revenue showed that there was some level of recovery to the local economy after successive years of declines resulting in a total increase in Sale Tax of $22.3 million. All other revenue sources within the General Fund remained fairly consistent compared to the previous fiscal year.
∙Total expenditures increased by $9.4 million (a 4.7% increase). This was due to increases in the Public Safety costs in both Police and Fire expenditures related to filling vacancies ($8.2 million and $1.0 million, respectively). This increase was offset by a $1.8 million decrease in Public Works expenditures, specifically in the General Services division, due to a decrease in major projects within the General Fund. Overall personnel expenditures also increased throughout all General Fund departments due to increases in pension costs.
Other governmental funds: As compared with the prior year, the total fund balances of the remaining governmental funds decreased by 2.2%, or $2.9 million, to $131.9 million with the following significant changes:
∙The Gas Tax and Road Fund decreased by $2.3 million from $15.2 million to $12.9 million. Amounts in this fund are restricted by state and federal statute. The decrease is due to multiyear projects winding down and others in various stages of completion.
∙The Capital Outlay Fund decreased by $0.5 million from $56.1 million to $55.6 million. Of this amount, $23.0 million is committed for contractual obligations and $3.6 million is committed for facility replacement. The remaining amount of $28.0 million is assigned and available for use at management’s discretion. The resulting decrease shows that expenditures were in line with projected revenues.
∙The Park Improvement Fund decreased by $0.5 million. Of this amount, $4.8 million is committed for contractual obligations. The decrease in fund balance is from increases in expenditures for phase III of the Sports Village Complex upgrades.
∙The Transportation Development Fund increased by $0.7 million from $50.8 million to $51.6 million. The entire amount of $51.6 million is committed for contractual obligations and/or current projects. The resulting slight increase shows that expenditures were in line with projected revenues.
Proprietary Funds - The City’s Proprietary Funds are shown in their entirety in the government-wide financial statements. All funds are being reported as major funds, so there is no need to report additional detail elsewhere in the document.
The Wastewater Treatment Fund has total net position of $532.6 million at the end of the current year, an increase of $8.2
14
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
million over the prior year. Total net position includes $466.3 million net investment in capital assets and $20.2 million of restricted assets which are not available to cover current expenses. The remaining net position of $46.1 million is unrestricted and available to cover current operating and capital needs (including plant and equipment replacement) of the fund. The majority of the increase resulted from more development completed to infrastructure in the current year which was reflected in a $9.7 million addition in Capital Contributions and an overall increase in the Net Investment in Capital Assets of $5.6 million.
The Refuse Collection Fund has total net position of $0.6 million at the end of the current year, a decrease of $1.7 million from the prior year. The decrease is due to less revenue collected from residential services/rates than is necessary to cover the operating costs of the division along with the pension and OPEB costs that are being reported as part of new accounting requirements. Further review of the rates charged to customers will occur to establish a rate sufficient to cover these costs in future years and to address the deficit in net position.
The River and Agricultural Water Fund has total net position of $28.9 million at the end of the current year, an increase of $4.9 million over the prior year. Total net position includes $18.0 million net investment in capital assets, which is not available to cover current expenses. The remaining net position of $10.9 million is unrestricted and available to cover current operating and capital needs of the fund. As in the prior year, revenues were more than sufficient to cover the fund costs resulting in this continued increase in net position.
The Domestic Water Fund has total net position of $271.1 million at the end of the current year, an increase of $6.0 million over the prior year. Total net position includes $220.9 million net investment in capital assets, which is not available to cover current expenses. The remaining net position of $50.2 million is unrestricted and available to cover current operating and capital needs of the fund.
The General Aviation Fund has total net position of $11.5 million at the end of the current year, a decrease of $2,538 compared to the prior year. Total net position includes $10.7 million net investment in capital assets, which is not available to cover current expenses. The remaining net position is unrestricted and available to cover current operating and capital needs of the fund.
The Offstreet Parking Fund has total net position of $1.1 million at the end of the current year, a decrease of $83,667 compared to the prior year. Total net position includes $1.0 million net investment in capital assets, which is not available to cover current expenses. The remaining net position is unrestricted and available to cover current operating and capital needs of the fund.
15
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets - The City’s investment in capital assets for its governmental and business-type activities as of June 30 of the current fiscal year amounts to $2.2 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings and systems, improvements, machinery and equipment, park facilities, roads, highways, bridges and construction in progress. The total increase in the City’s investment in capital assets for the current fiscal year was $28.1 million. Of this amount, a $15.7 million increase relates to Governmental Activities and a $12.4 million increase that relates to Business-Type Activities. Depreciation expense of $92.7 million was less than capital assets by this amount.
These financial statements include infrastructure assets constructed or acquired through fiscal year 2018-19.
Major capital asset events during the current fiscal year included the following:
∙A variety of street construction projects and rehabilitation of major arterial streets. Construction in progress for governmental activities as of the end of the current fiscal year is $105.6 million. This figure includes over $103.7 million towards major street construction, traffic signals, and resurfacing projects throughout the City.
∙The City added over $24.9 million in new streets and roads primarily due to new residential developments completed in the current year. These newly constructed right of ways are transferred over to the City by the various developers when the work is finalized.
|
|
City of Bakersfield - Capital Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land and water storage rights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciable buildings, property,
equipment and infrastructure, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-amortizable intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
City of Bakersfield - Outstanding Debt
|
City of Bakersfield - Outstanding Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of Participation*
|
|
|
|
|
Total governmental activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business-type activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Certificates of Participation in governmental activities are debt of the former Redevelopment Agency that is now reported as City debt.
∙Long-Term Debt - At the end of the current fiscal year, the City had a total debt outstanding of $176.4 million. The City’s total debt decreased by a net amount of $6.7 million during the current fiscal year. This amount is the result of normal debt maturities.
Certificates of Participation issued by the City via the former Redevelopment Agency in 2006 carry a Reserve Fund Surety from Ambac Assurance Company (Ambac). Moody’s Investor’s Service (Moody’s) rating on Ambac is currently “Baa1”. The current underlying rating on the Certificates of Participation has not been revised (currently “A1”). This rating on the Certificates of Participation reflects only the view of Moody’s, and any desired explanation of the significance of such rating should be obtained from Moody’s. There is no assurance that such rating will continue for any given period of time or that such rating will not be revised or withdrawn by Moody’s if, in the judgment of Moody’s, circumstances so warrant.
The 2015 Wastewater Revenue Bonds – Series A, issued by the City in 2015, which redeemed a majority of the 2007 Wastewater Revenue Bonds – Series A, has an “Aa2” rating from Moody’s and an "AA" rating from Standard & Poors. There is no assurance that such ratings will continue for any given period of time or that such ratings will not be revised or withdrawn by the rating agencies if, in their judgment, circumstances so warrant.
More detailed information regarding capital asset and long-term debt activity can be found in the related notes to the financial statements. See Note 5 for capital assets and Note 11 for long-term debt.
17
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget reflect an increase in resources of $22.9 million and an increase in appropriations of $10.1 million. Significant budgetary amendments (changes) are summarized as follows:
∙$0.9 million increase in various resources and appropriations due to revenues associated with open purchase orders at the end of the previous fiscal year. Also, $1.3 million increase in various resources due to revenues associated with prior year appropriations not spent and carried forward to this fiscal year.
∙$17.5 million was added to the budget for the new PSVS district sales tax approved by the residents of the City to address needs throughout Bakersfield including public safety, economic development and homelessness.
∙$1.2 million increase in resources and appropriations for State for the Homeless Emergency Aid Program (HEAP) specifically awarded to the the Development Services department to deal with the growing problem in the area.
∙$0.7 million increase in resources and appropriations for grant related projects in the Police Department.
The final amended revenue estimate budget figures in the General Fund were lower than actual revenue by $11.0 million and appropriations were higher than actual expenditures by $8.0 million. Significant differences between budget and actual amounts are as follows:
∙$10.1 million positive variance in tax revenue. This is the result of an increase in property tax revenue and sales and use tax revenue. Property tax revenue was initially estimated to increase while Sales tax revenue were not expected to increase at the level experienced. Projections for tax revenue were conservative in nature because of uncertainty throughout the year on the level and sustainability of economic recovery in the area.
∙$1.9 million less than budgeted in intergovernmental revenue which is due primarily to this source of funds being based on reimbursement of expenditures incurred. Some of the project activity for these awards had not moved forward resulting in less revenue being recognized.
∙$1.8 million variance of appropriations over actual expenditures in Public Safety-Fire. The savings are due primarily to salary and benefit savings from unfilled positions plus some grant funded projects that were budgeted but not started.
∙$4.9 million variance of appropriations over actual expenditures in Departments other than Fire are also due primarily to salary and benefit savings from unfilled positions.
18
|
|
CITY OF BAKERSFIELD
Management's Discussion and Analysis
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The key assumptions in the General Fund revenue forecast for fiscal year 2019-20 were:
1.Property tax revenue is projected to grow at 4% which is the same level as last year’s estimate as projected by Kern County.
2.Sales and use tax revenue is projected to show a slight increase of 2% in fiscal year 2019-20, which is again the same estimate made for fiscal year 2018-19. Sales and use tax revenues are difficult to project this year because of slowdowns in previous years in the oil and gas industry, both locally and globally, and the economy as a whole. While the economy has shown growth in recent years, the City continues to take a conservative approach on the expectations of the sustainability and levels of that growth.
3.California Public Employees’ Retirement System (CalPERS) approved new policies last year which have raised rates approximately 10% for next fiscal year. Similar increases are projected for the next five fiscal years.
New items specifically addressed in the 2019-20 budget include the following:
Police Department – The Police Department’s operating budget has increased from fiscal year 2018-19 by 16.8%, totaling $15.7 million. This increase is primarily attributable to increased costs related to the PSVS plan to increase the number of officers and support staff in the department over the next three years.
Fire Department – The Fire Department's operating budget had a 9.2% increase from fiscal year 2018-19 totaling $3.8 million. This increase is primarily due to the implementation of the PSVS driven plan to increase staffing by 11 in the upcoming year.
Public Works - The Public Works Department operating budget increased by $6.7 million, or 5.4%, from fiscal year 2018-19. The budget included an addition of 7 employees (non-PSVS) as well as some operational increases related to PSVS. The increase was also due to the CalPERS rate escalations as well as an increases in staffing in areas covered by non-General fund revenue, specifically in operations for refuse and fleet services. In addition, there was a significant need for specific equipment to be replaced for non-General fund services that were well beyond their normal life cycle.
Development Services – The Development Services Department’s operating budget has increased from fiscal year 2018-19 by 56.4%, totaling $6.1 million. This significant growth is due almost exclusively to PSVS related plans in the department to add rapid response teams to address homelessness and establish an economic development team to foster further growth in the City.
Recreation and Parks – The Recreation and Parks Department’s operating budget has increased from fiscal year 2018-19 by 11.5%, totaling $2.4 million. This increase is in part also related to a PSVS program to establish a rapid response team in this department to address homeless issues in City Parks. It is also due to the increase in CalPERS rates resulting in higher benefit costs.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information can be sent via e-mail to: finance@bakersfieldcity.us. Formal written requests should be addressed to: City of Bakersfield, Attn: Finance Department, 1600 Truxtun Avenue, Bakersfield, CA 93301.
19
|
Government-Wide Financial Statements
20
|
|
Statement of Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes/loans receivable - current
|
|
|
|
Due from other governmental agencies
|
|
|
|
|
|
|
|
|
Prepayments and inventories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciable capital assets, net
|
|
|
|
|
|
|
|
|
Non-amortizable intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Outflows of Resources:
|
|
|
|
Deferred pensions (See Note 16)
|
|
|
|
Deferred OPEB (See Note 17)
|
|
|
|
|
|
|
|
|
Total deferred outflows of resources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
|
|
|
|
Advances from grantors and third parties
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kern River Levee District/Buena Vista
|
|
|
|
Claims and judgments payable
|
|
|
|
Compensated absences payable
|
|
|
|
Due in more than one year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims and judgments payable
|
|
|
|
Net other post-employment benefits liability
|
|
|
|
Compensated absences payable
|
|
|
|
|
|
|
|
|
Total noncurrent liabilities
|
|
|
|
|
|
|
|
|
Deferred Inflows of Resources:
|
|
|
|
Deferred pensions (See Note 16)
|
|
|
|
Deferred OPEB (See Note 17)
|
|
|
|
Total deferred inflows of resources
|
|
|
|
|
|
|
|
|
Net investment in capital assets
|
|
|
|
Restricted: Capital improvements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
21
|
|
22
|
|
Statement of Activities
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
Operating
Grants and Contributions
|
Capital
Grants and Contributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on long-term debt
|
|
|
|
|
|
Total governmental activities
|
|
|
|
|
|
Business-type activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
River and agricultural water
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business-type activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intergovernmental, unrestricted
|
|
Unrestricted grants and contributions
|
|
|
|
|
|
|
|
|
|
Total general revenues and transfers
|
|
|
|
Net position - Beginning of Year, as restated
|
|
Net position - end of Year
|
The accompanying notes are an integral part of these financial statements.
23
|
|
Net (Expenses) Revenues and
Changes in Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
25
|
|
Governmental Fund Financial Statements
26
|
|
CITY OF BAKERSFIELD
Balance Sheet
Governmental Funds
|
|
|
|
Transient Occupancy Taxes
|
Community Development Block Grant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from other governmental agencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities, Deferred Inflows of Resources and Fund Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advances from grantors and third parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Inflows of Resources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities, deferred inflows of
resources, and fund balances
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
27
|
|
|
|
|
Transportation Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28
|
|
CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
|
Total Fund Balances - Total Governmental Funds
|
|
|
|
|
|
|
Amounts reported for Governmental Activities in the Statement of Net Position are different because:
|
|
|
|
|
|
|
Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet. Capital assets allocated from Internal Service Funds are included in the Internal Service Funds adjustment below.
|
|
|
|
|
|
|
Ending accumulated depreciation
|
|
|
|
|
|
|
Land held for resale is not a current financial resource and is not reported in the Governmental Funds
|
|
|
|
|
|
|
Deferred outflows of resources related to pensions are not a current financial resource and are not reported in the Governmental Funds
|
|
|
|
|
|
|
Deferred outflows of resources related to other post-employment benefits are not a current financial resource and are not reported in the Governmental Funds
|
|
|
|
|
|
|
Deferred inflows of resources related to pensions are not a current financial resource and are not reported in the Governmental Funds
|
|
|
|
|
|
|
Deferred inflows of resources related to other post-employment benefits are not a current financial resource and are not reported in the Governmental Funds
|
|
|
|
|
|
|
Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet.
|
|
|
|
|
|
|
Unavailable revenue and other resources not available to liquidate liabilities of the current period are not reconginized in the Governmental Funds.
|
|
|
|
|
|
|
Internal Service Funds are used by management to chare the costs of certain activities, such as insurance and fleet management, to individual funds. The assets and liabilities of the Internal Service Funds are included in governmental activities in the Government-Wide Statement of Net Position.
|
|
|
Long-term liabilities are not due and payable in the current period and therefore they are not reported in the Governmental Funds Balance Sheet. Noncurrent liabilities allocated from Internal Service Funds are included in the Internal Service Funds adjustment above.
|
|
|
Notes/Contracts/Loans payable
|
|
|
Compensated Absences Payable
|
|
|
Unfunded post-employment benefits
|
|
|
Unfunded pension benefits
|
|
|
|
|
|
|
Net Position of Governmental Activities
|
|
|
The accompanying notes are an integral part of these financial statements.
29
|
|
30
|
CITY OF BAKER - ACFR2019 - Xbrl
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
|
For the Fiscal Year Ended June 30, 2019
|
|
|
Transient
Occupancy
Taxes
|
Community
Development
Block Grant
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fines, forfeitures and assessments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions and donations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fiscal charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess (deficiency) of revenues
over (under) expenditures
|
|
|
|
|
Other financing sources (uses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other financing sources (uses)
|
|
|
|
|
|
|
|
|
|
|
Net change in fund balances
|
|
|
|
|
|
|
|
|
|
|
Fund balances - beginning, as restated
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
31
|
|
|
|
|
Transportation Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32
|
|
CITY OF BAKERSFIELD
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Government-Wide Statement of Activities
|
For the Fiscal Year Ended June 30, 2019
|
|
|
|
Net Change in Fund Balances - Total Governmental Funds
|
|
|
Amounts reported for Governmental Activities in the Statement of Activities are different because:
|
|
|
Governmental Funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
|
|
|
|
|
|
|
Capital Outlay eliminated
|
|
|
|
|
|
|
Depreciaition expense is deducted from fund balance (net of Internal Service Fund depreciation of $7,219,150 which has already been allocated to serviced funds).
|
|
|
|
|
|
|
Contributions of infrastructure and improvements by developers are capitalized in the Statement of Activities, but are not recorded in the Governmental Fund Financial Statements because no cash changed hands.
|
|
|
Certain expenses are reported in the Government-Wide Statement of Activities, but they do not require the use of current financial resources. Therefore, these expenses are not reported as expenditures in Governmental Funds.
|
|
|
|
|
|
|
Net compensated absences expense
|
|
|
Interest expense on long-term debt
|
|
|
|
|
|
|
Net other postemployment benefit expense
|
|
|
Bond and loan proceeds provide current financial resources to Govermental Funds, but issuing debt increases long-term liabilities in the Government-Wide Statement of Net Position. Repayment of bond pricipal is an expenditure in Governmental Funds, but the repayment reduces long-term liabilities in the Government-Wide Statement of Net Position.
|
|
|
Unearned revenue and other resources not available to liquidate liabilities of the current period are not reconginized in the Governmental Funds. Revenue in the Statement of Activities is not limited by availability, so cerntain revenues need to be reduced by the amounts that were unavailable at the end of the year. This adjustment records a net decrease in revenues - unavailable revenues at the beginning of the year exceed ending unavailable revenues by this amount.
|
|
|
Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the Internal Service Funds i reported with Governmental Activites.
|
|
|
Loss on disposal of governmental capital assets is not recorded in fund activity but is included in Governmental Activities
|
|
|
|
|
|
|
Change in Net Position of Governmental Activities
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
33
|
Proprietary Fund Financial Statements
|
These funds account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of net income is appropriate for accountability purposes.
Wastewater Treatment Fund is used to account for the provision of sewer service to the residents of the City and some residents of Kern County. This fund also accounts for the activities related to the debt issuance which provided for the Wastewater Treatment Facilities.
Refuse Collection Fund is used to account for the collection and disposal of refuse within the City. All activities necessary to provide such services are accounted for in this fund.
River & Agricultural Water Fund is used to account for the provision of water service restricted primarily for agricultural purposes to users within the City and some users within Kern County (some Kern River water is exchanged for State Aqueduct water for domestic water purposes). All activities necessary to provide such services are accounted for in this fund.
Domestic Water Fund is used to account for the provision of water service to some residents of the City and Kern County. All activities necessary to provide such service are accounted for in this fund.
General Aviation Fund is used to account for the acquisition and operation of the Bakersfield Airpark. The majority of acquisition and improvement financing for the airport facility was provided by a grant from the Federal Aviation Administration.
Offstreet Parking Fund is used to account for the operations of the parking garage at 18th and Eye Streets and various offstreet surface parking lots within the City. The parking garage was financed by the former Redevelopment Agency and the related debt was retired in August 1994. Subsequently, the title was transferred to the City.
Internal Service Funds are used to provide goods and services by one department or agency to other departments or agencies of the City on a cost reimbursement basis.
34
|
|
CITY OF BAKERSFIELD
Statement of Net Position
Proprietary Funds
|
|
|
|
|
River & Agricultural
Water
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from other governmental agencies
|
|
|
|
Prepayments and inventories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciable buildings, property,
equipment and infrastructure, net
|
|
|
|
|
|
|
|
|
Non-amortizable intangible assets
|
|
|
|
Other long-term receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred outflows of resources:
|
|
|
|
|
|
|
|
|
Deferred other post-employment benefits
|
|
|
|
|
|
|
|
|
Total deferred outflows of resources
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
|
|
|
|
Workers' compensation claims
|
|
|
|
Compensated absences payable
|
|
|
|
Long-term debt - due within one year
|
|
|
|
Capital leases payable - due within one year
|
|
|
|
Advances from grantors and third parties
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
|
|
Long-term debt - due in more than one year
|
|
|
|
Capital leases payable - due in more than one year
|
|
|
|
Kern River Levee District/Buena Vista
|
|
|
|
|
|
|
|
|
Workers' compensation claims
|
|
|
|
Compensated absences payable
|
|
|
|
|
|
|
|
|
Net other post-employment benefits liability
|
|
|
|
Total noncurrent liabilities
|
|
|
|
|
|
|
|
|
Deferred inflows of resources:
|
|
|
|
|
|
|
|
|
Deferred other post-employment benefits
|
|
|
|
Total deferred inflows of resources
|
|
|
|
|
|
|
|
|
Net investment in capital assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reflect the consolidation of internal service fund
activities related to proprietary funds
|
|
|
Net position of business-type activities
|
|
|
The accompanying notes are an integral part of these financial statements.
35
|
|
|
|
|
|
|
Governmental Activities
Internal Service Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36
|
|
CITY OF BAKERSFIELD
Statement of Revenues, Expenses and Changes in Fund Net Position
Proprietary Funds
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
River & Agricultural
Water
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
|
Transmission and distribution
|
|
|
|
Workers' compensation payments
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating revenues (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of capital assets
|
|
|
|
Total nonoperating revenues (expenses)
|
|
|
|
Income (loss) before transfers
and capital contributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Position -
Beginning of Year - as restated
|
|
|
|
Total Net Position-End of Year
|
|
|
|
Adjustment to reflect the consolidation of internal
service activity related to proprietary funds
|
|
|
Change in net position of business-type activities
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
37
|
|
|
|
|
|
|
Governmental
Activities
Internal Service
Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38
|
|
CITY OF BAKERSFIELD
Statement of Cash Flows
Proprietary Funds
For the Fiscal Year Ended June 30, 2019
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Customers, including cash deposits
|
|
|
Prior year reimbursements and cost recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash deposits returned to customers
|
|
|
Net cash provided (used) by operating activities
|
|
|
Cash flows from noncapital financing activities:
|
|
|
Cash transferred from other funds
|
|
|
Cash transferred to other funds
|
|
|
County/developer project share
|
|
|
|
|
|
|
Net cash provided (used) by noncapital financing activities
|
|
|
Cash flows from capital and related financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of capital assets
|
|
|
Proceeds from sale of capital assets
|
|
|
|
|
|
|
Net cash provided (used) by capital and related financing activities
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Net increase (decrease) in the fair value of investments
|
|
|
Net cash provided by investing activities
|
|
|
|
|
|
|
Net increase (decrease) in cash and investments
|
|
|
|
|
|
|
Cash and investments - Beginning of year
|
|
|
Cash and investments - End of year
|
|
|
The accompanying notes are an integral part of these financial statements.
39
|
|
River & Agriculture Water
|
|
|
|
|
Governmental Activities Internal Service Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40
|
|
CITY OF BAKERSFIELD
Statement of Cash Flows (concluded)
Proprietary Funds
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile operating income (loss) to net
|
|
|
cash provided (used) by operating activities:
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable
|
|
|
(Increase) decrease in inventories
|
|
|
(Increase) decrease in prepaid items
|
|
|
Increase (decrease) in accounts payable
|
|
|
Increase in workers' compensation claims
|
|
|
Increase (decrease) in unearned revenue
|
|
|
Increase (decrease) in customers' deposits
|
|
|
Increase (decrease) in compensated absences
|
|
|
Increase (decrease) in net pension liability
|
|
|
Increase (decrease) in deferred outflows/inflows of resources for pensions
|
|
|
Increase (decrease) in net other post-employment benefits liability
|
|
|
Increase (decrease) in deferred outflows/inflows of resources for OPEB
|
|
|
|
|
|
|
Net cash provided (used) by operating activities
|
|
|
Noncash investing capital and financing activities:
|
|
|
|
|
|
|
Contribution of equipment from other departments
|
|
|
Contributions of infrastructure and improvements
by developers
|
|
|
The accompanying notes are an integral part of these financial statements.
41
|
|
River & Agriculture Water
|
|
|
|
|
Governmental Activities Internal Service Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42
|
|
43
|
Fiduciary Fund Financial Statements
|
Fiduciary funds account for assets held by the City in a trustee capacity or as an agent for individual private organizations, other governmental units and/or other funds. Detailed combining statements for Fiduciary Funds are located in the Supplementary Information section. Below are descriptions of the generic fund types within this category and specific funds within each fund type.
Private Purpose Trust Funds
Redevelopment Successor Agency - The Bakersfield Redevelopment Agency ceased activities in February 2012. All non-housing related assets, liabilities and activities have been transferred to the City and are accounted for in a trust fund.
Planning Habitat Trust Fund - This fund is used to account for monies collected from developers to be used to purchase suitable land to provide habitat for endangered species. After the land is purchased, it is transferred to the State Fish and Game Department for maintenance.
Pension and Other Employee Benefit Trust Funds
Fire Relief and Pension Trust Fund - This fund is used to account for the accumulation of resources to be used for retirement annuity payments at appropriate amounts and times in the future for Fire Department personnel who retired prior to June 2, 1972.
Other Post-Employment Benefits (OPEB) Irrevocable Trust Fund - This fund is used to account for the City's post-retirement medical benefit plan. The City provides medical insurance coverage through contributions to eligible retirees' insurance premiums.
Agency Funds
Special Deposits Fund - This fund is used to account for the collection by the City as agent for organizations operated under the auspices of the Recreation Division, security deposits for utility franchises, temporary deposits for construction permits and bid deposits. This fund is also used for the collection of police seized property, local Law Enforcement Block Grants, and other revenues held in trust pending disposition of contingencies.
Improvement Districts Fund - This fund is used to account for the collection of liens for improvements benefiting private properties and payments to the holders of bonds issued pursuant to the Improvement Act of 1913 and the Improvement Bond Act of 1915. The City is in no way liable for the payment of bonded indebtedness, but the City serves as agent to collect the principal and interest installments from the owners of the benefited properties. A trustee administers the periodic payment to the bondholders. In addition, Community Service Districts created for the West Ming and Old River Ranch developments are accounted for in this section. These funds are collected to be used to pay for public safety costs in the applicable communities.
44
|
|
CITY OF BAKERSFIELD
Statement of Fiduciary Net Position
Fiduciary Funds
|
|
|
Private Purpose
Trust Funds
|
Pension and Other
Employee Benefit
Trust Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from other governmental agencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advances from grantors and third parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individuals, organizations and other governments
|
|
|
|
Pensions & other post-employment benefits
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
45
|
|
CITY OF BAKERSFIELD
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Fiscal Year Ended June 30, 2019
|
|
|
Private Purpose
Trust Funds
|
Pension and Other
Employee Benefit
Trust Funds
|
|
|
|
|
Contributions to pooled investments
|
|
|
|
|
|
|
Successor agency property tax deposits
|
|
|
Charges for services/capital lease revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of uninhabited land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net position - beginning of year
|
|
|
|
|
|
|
Net position - end of year
|
|
|
The accompanying notes are an integral part of these financial statements.
46
|
|
47
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
The accompanying financial statements of the City of Bakersfield (the “City”) have been prepared in conformity with generally accepted accounting principles in the United States of America (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). The following summary of the City’s significant accounting policies is presented to assist the reader in interpreting the basic financial statements and other data in this report. These policies should be viewed as an integral part of the accompanying basic financial statements.
A.Description of Reporting Entity
|
The City of Bakersfield, California, is a California Charter City, incorporated on January 11, 1898, and serves as the county seat of the County of Kern, California (the “County”). The City is a full-service city and operates under a Council - Manager form of government, providing the following services as authorized by its Charter: General government; public safety; public works; and development and conservation.
As required by GAAP, these basic financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government's operations and so data from these units are combined with data of the primary government.
Government-Wide Financial Statements
The Government-Wide financial statements (the statement of net position and the statement of activities) report information of all of the non-fiduciary activities of the primary government and its component units. For the most part, eliminations have been made to minimize the double counting on internal activities. Internal activities for services provided and used that are not eliminated include water, solid waste and sewer services provided to various other functions of the government. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Some functions include expenses that are, in essence, indirect expenses of other functions resulting from charges among funds or programs for centralized services. Program revenues include: 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.
Net position is restricted when constraints placed on it are either externally imposed or are imposed by constitutional provisions or enabling legislation. Internally imposed designations of resources are not presented as restricted net position. When both restricted and unrestricted resources are available for use, generally it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed.
48
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
B.Basis of Presentation (continued)
|
Governmental Fund Financial Statements
The governmental fund financial statements provide information about the City’s funds, including fiduciary funds and the blended component unit. Separate statements for each fund category - governmental, proprietary and fiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as non-major funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses for enterprise funds include cost of sales and services, administrative expenses, and depreciation of capital assets. As used in this section, the term depreciation can include amortization of intangible assets. All expenses not meeting this definition are reported as nonoperating expenses.
The City reports the following major governmental funds:
General Fund - The General Fund is the principal operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. For the City, the General Fund includes basic governmental activities, such as general government, public safety, public works, and community services.
Transient Occupancy Taxes Fund - The Transient Occupancy Taxes Fund is used to account for transient occupancy tax revenues (hotel tax) and expenditures funded by this revenue source. The Rabobank Arena and Convention Center and the Bakersfield Ice Sports Center operating revenues and expenditures are recorded in this fund. This fund is also used to account for the operations of the Visit Bakersfield division of the City.
Community Development Block Grant Fund – The Community Development Block Grant Fund is used to account for resources provided by the Federal Housing and Community Development Act of 1974 for the elimination of slums and blight, housing conservation and improvements of community services.
Gas Tax & Road Fund - The Gas Tax & Road Fund is used to account for the City’s share, based upon population, of state gasoline taxes. State law requires these gasoline taxes to be used to maintain streets or for major street construction. This fund also accounts for other State and Federal grant revenues related to street maintenance or construction, including the Federal earmark Thomas Roads funds.
Capital Outlay Fund - The Capital Outlay Fund is used to account for the cost of capital projects financed by local revenues and various grant/loan proceeds for capital expenditures. This fund also accounts for the special Utility Franchise/Surcharge Fund created by the City Council to account for the specified local road project costs funded by the selected electricity and gas franchise surcharge fees. In addition, funds contributed by the County to be used to cover a portion of the costs of the local match needed for the Thomas Roads projects are accounted for in this fund.
Park Improvement Fund - The Park Improvement Fund is used to account for funds collected for residential park development (Ordinance No. 3646). Fees are collected based on the development’s share of the cost to develop, improve, construct, or enhance a neighborhood park (Ordinance No. 3327).
Transportation Development Fund - The Transportation Development Fund is used to account for funds collected from fees paid to mitigate the traffic impacts to the regional circulation system caused by a development project. The fees are paid when a building permit for the development project is obtained, and are based upon the amount of traffic the development will generate. The fee schedule was adopted with Ordinance No. 3513 and will be periodically evaluated by the City Council and revised to reflect updated costs and growth projections.
49
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
B.Basis of Presentation (continued)
|
The City reports the following major proprietary (enterprise) funds:
Wastewater Treatment Fund - The Wastewater Treatment Fund is used to account for the provision of sewer service to the residents of the City and some residents of the County. This fund also accounts for the activities related to the debt issuance, which provided for the Wastewater Treatment Facilities.
Refuse Collection Fund - The Refuse Collection Fund is used to account for the collection and disposal of refuse within the City. All activities necessary to provide such services are accounted for in this fund.
River & Agricultural Water Fund - The River & Agricultural Water Fund is used to account for the provision of water service restricted primarily for agricultural purposes to users within the City and some users within the County (some Kern River water is exchanged for State Aqueduct water for domestic water purposes). All activities necessary to provide such services are accounted for in this fund.
Domestic Water Fund - The Domestic Water Fund is used to account for the provision of water service to residents of the City and County connected to the City's system. All activities necessary to provide such services are accounted for in this fund.
General Aviation Fund - The General Aviation Fund is used to account for the acquisition and operation of the Bakersfield Municipal Airpark located on Union Avenue. The majority of acquisition and improvement financing for the airport facility was provided by a grant from the Federal Aviation Administration.
Offstreet Parking Fund - The Offstreet Parking Fund is used to account for the operations of the parking garage at 18th and Eye Streets and various offstreet surface parking lots within the City. The parking garage was financed by the former Redevelopment Agency and the related debt was retired in August 1994, and subsequently, the title was transferred to the City.
The City reports the following additional fund types:
Internal Service Funds - The Internal Service Funds are used to account for the cost of goods or services provided by one department or agency to other departments or agencies of the governmental unit on a reimbursement basis. The City accounts for its self-insurance and equipment management activities as internal service funds.
Private Purpose Trust Fund - The Planning Habitat Trust Fund is used to account for monies collected from developers to be used to purchase suitable land to provide habitat for endangered species. After the land is purchased, it is transferred to the State Fish and Game Department for maintenance. The City also records the assets, liabilities, and activities of the Redevelopment Successor Agency in a separate trust fund.
Pension and Other Employee Benefit Trust Funds - The Fire Relief and Pension Trust Fund is used to account for the annuity payments at appropriate amounts and times in the future for Fire Department personnel who retired prior to June 26, 1972. The Other Post-Employment Benefits (OPEB) Irrevocable Trust Fund is used to account for the City’s postretirement medical benefit plan in which the City provides medical insurance coverage through contributions to eligible retirees’ insurance premiums.
Agency Funds - The Agency Funds account for assets held by the City as an agent for various local governments or other entities. The Special Deposits Fund is used to account for the collection by the City as agent for organizations operated under the auspices of the Recreation Division, security deposits for utility franchises, temporary deposits for construction permits and bid deposits. This fund is also used for the collection of police seized property, local Law Enforcement Block Grants and other revenues held in trust pending disposition of contingencies. The Improvement Districts Fund is used to account for the collection of liens for improvements benefiting private properties and payments to the holders of bonds issued pursuant to the Improvement Bond Act of 1913 and the Improvement Bond Act of 1915. The City is in no way liable for the payment of bonded indebtedness, but the City serves as agent to collect the principal and interest installments from the owners of the
50
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
B.Basis of Presentation (continued)
|
benefited properties. A trustee provides the periodic payment to the bondholders. This fund also accounts for the special assessments and taxes collected within the boundaries of Community Service Districts within the City.
The government-wide, proprietary, private purpose trust, and pension and other employee benefit trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements, and donations. On an accrual basis of accounting, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. The agency funds utilize the accrual basis of accounting to report assets and liabilities but technically have no measurement focus.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property and sales taxes, interest, certain State and Federal grants and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under the accrual basis of accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary funds' principal ongoing operations. Revenues and expenses not meeting this definition are reported as nonoperating.
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items
|
Cash and Investments
Cash balances of each of the City's funds, except for certain Trust and Agency Funds, are pooled and invested by the City. Income earned from pooled investments is allocated to each of the funds based on average pooled cash balances during the year. Deficit cash balances are classified as due to other funds and funded by the General Fund or related operating fund.
The City applies GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. This statement generally requires that investments be reported at their fair value and that all changes in fair value be reflected as income of the period in which they occur.
Statutes authorize the City to invest in obligations of the United States Treasury, agencies and instrumentalities, commercial paper, bankers' acceptances, repurchase agreements, money market funds, and the State Treasurer's investment pool. The City's Pension Trust Fund is also authorized to invest in corporate bonds rated A or better by a national rating system generally recognized and used by banks and investment brokers in the United States.
Investments are comprised of obligations of the United States Treasury, agencies and instrumentalities, cash, time certificates of deposit, mutual funds, bankers' acceptances, money market accounts, deposits in the State of California Local Agency Investment Fund (LAIF), and California Asset Management Program (CAMP). Investments are stated at fair value.
51
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued)
|
Interfund Transactions
Interfund transactions are reflected as either loans, services provided, reimbursements or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statement as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.
Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation.
Receivables
All trade and property tax receivables are shown net of an allowance for uncollectible accounts. Trade accounts receivable in excess of 180 days comprise the trade accounts receivable allowance for uncollectible accounts.
Inventory and Prepaid Items
Inventory is valued at average cost applied on a first-in, first-out (FIFO) basis. The reserve for prepaid expenses relates to certain payments to vendors for costs applicable to future accounting periods. The cost of both inventories and prepaid items are recorded as expenditures/expenses when consumed rather than when purchased.
Capital Assets
Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the government-wide financial statements to the extent the City’s capitalization thresholds are met.
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and intangible water rights are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an estimated useful life in excess of one year and an initial individual cost of more than $50,000 for infrastructure and $5,000 for all other capital assets. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation in the majority of instances. When assets are donated in relation to a service concession arrangement, they are reported at acquisition cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.
52
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued)
|
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.
Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives:
|
|
|
|
|
|
|
Buildings, structures and improvements
|
|
|
Transmission and distribution equipment
|
|
|
|
|
|
|
|
Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Debt principal payments of both governmental and business-type activities are reported as decreases in the balance of the liability on the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.
In the fund financial statements, however, debt principal payments of governmental funds are recognized as expenditures when paid. Governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
Deferred Outflows and Inflows of Resources
As required by GASB Statements No. 63 and No. 65, the City recognized applicable deferred outflows and inflows of resources in the government-wide, governmental, and proprietary fund type financial statements.
The Statements of Net Position and Balance Sheets will sometimes report a separate section for deferred outflows of resources, defined as a consumption of net position or fund balance by the City that is applicable to a future funding period, or deferred inflows of resources, defined as an acquisition of net position or fund balance by the City that is applicable to a future funding period. The City has items that qualify for reporting in these categories and are detailed in a separate note disclosure.
53
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued)
|
Net Position/Fund Balance
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted.
∙Net Investment in Capital Assets - This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.
∙Restricted Net Position - This category presents external restrictions imposed by creditors, grantors, contributors, laws, or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
∙Unrestricted Net Position - This category represents net position of the City, not restricted for any project or other purpose.
As of June 30, 2019, net position is as follows:
|
|
|
|
|
|
|
|
|
|
|
Net investment in capital assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund balances of the governmental funds are report using a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported. Fund balances for governmental funds are segregated as follows:
∙Nonspendable Fund Balance – includes net resources that cannot be spent because of their form or because of legal or contractual limitations, and therefore must remain intact.
∙Restricted Fund Balance – includes net resources that have externally enforceable limitations on their use. These limitations can be established by creditors, grantors, or by laws and regulations.
∙Committed Fund Balance – includes amounts with self-imposed limitations and are set in place prior to the end of the fiscal year. Commitments are set forth by the formal action of the City’s highest level of decision-making authority, the City Council, and the limitations require that same level of authority to be removed.
∙Assigned Fund Balance – includes amounts for which the intended use results in limitations but do not meet the requirements for either the “Restricted” or “Committed” classifications. Intended use can be established by the City Council, a governing committee or board, or by a City official designated as having that authority.
∙Unassigned Fund Balance – is the residual balance of the General Fund not included in the other classifications.
The City Council establishes, modifies or rescinds fund balance commitments though approval of contracts for services and
54
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued)
|
supplies that require City Council authorization through resolution. Fund balance assignments are made by agreements entered into by department heads, and their designees, for specific purposes. The City Council also establishes fund balance assignments through the adoption of the budget and subsequent budget amendments. Assignments are generally temporary and as such, additional action is not usually needed for assignments to be removed. The City Council approved, through resolution, a Fund Balance policy that established these rules for fund balance commitments and assignments in the General Fund. It was not deemed necessary to include a policy to achieve and maintain a specific level of unrestricted fund balance in the General Fund.
Fund Balance Flow Assumptions
The City will sometimes fund outlays for a specific purpose from restricted and unrestricted resources (committed, assigned, and unassigned fund balance). A flow assumption must be made about the order of how these resources will be applied to properly calculate the amounts reported as restricted, committed, assigned, and unassigned. It is the City’s policy to consider restricted fund balance to be used completely before any components of unrestricted fund balance. When the components of unrestricted fund balance are used for the same purpose, the amount classified as committed is used first, followed by assigned, and unassigned is applied last.
Property Taxes
In 1978, a state constitutional amendment (Proposition 13) provided that the property tax rate is limited to 1% of market value. This property tax rate limitation may only be increased through voter approval. The County is the sole agency responsible for levying and collecting the property taxes and distributing them to taxing jurisdictions. Taxes are allocated and distributed based upon each taxing jurisdiction's assessed valuations and upon any voter-approved debt override on the tax rate.
The property tax calendar for the City is as follows:
55
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
D.Assets, Liabilities, Net Position or Fund Balances, and Other Financial Statement Items (continued)
|
Pension Plan
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employee's Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Other Post-Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City's OPEB Plan (OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by California Public Employees' Retirement System (CalPERS). For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, are reported at cost.
Cash Flow Statements
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, deposits, short-term investments and cash and investments with fiscal agents. Cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less meet this definition.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
E.Stewardship, Compliance, and Accountability
|
Budgets and Budgetary Accounting
The procedures established by the City Council in adopting the budgetary data reflected in the financial statements are as follows:
4.Prior to June 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.
5.Public hearings are conducted to obtain taxpayer comments.
6.The City Council legally enacts the budget by resolution before July 1.
The City Manager is authorized to transfer budgeted amounts between departments within any fund and approve reductions of budgeted amounts. Since expenditures may not exceed budgeted appropriations at the fund level, any revisions that alter the total appropriations of any fund are to be approved by the City Council. Projects budgeted within the current fiscal year but not yet completed can be re-appropriated the following fiscal year with City Manager approval. All other unencumbered appropriations lapse at year-end. Encumbered amounts are re-appropriated in the ensuing fiscal year budget.
56
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
E.Stewardship, Compliance, and Accountability (continued)
|
Budgets are adopted for all governmental fund types and are prepared on a basis consistent with GAAP. Budgeted amounts are as originally adopted, or as amended by the City Council. During the fiscal year ended June 30, 2019, the City Council approved $73,254,062 of increases to the originally adopted budget, excluding carryovers of prior year encumbered balances and selected capital appropriations.
Deficit Net Position
The Self-Insurance Internal Service Fund reported a deficit in net position of $20,754,190 at the close of the fiscal year. The continued deficit is the result of a significant increase in the workers' compensation liability calculated in the City’s most recent actuarial study. Workers' compensation charges can fluctuate significantly from year to year and staff will continue to adjust departmental rates accordingly to maintain sufficient funding levels.
Reclassification and Eliminations
Interfund balances must generally be eliminated in the government-wide financial statements, except for net residual amounts due between governmental activities. Amounts involving fiduciary funds should be reported as external transactions. Any allocations must reduce the expenses of the function from which the expenses are being allocated, so that expenses are reported only once, in the function in which they are allocated.
Excess of Expenditures Over Appropriations
For the fiscal year ended June 30, 2019, expenditures exceeded appropriations for transfers to other funds in the Transient Occupancy Taxes Fund by $9,354. This over-expenditure relates to budgeted estimates related to anticipated loan repayment costs for lighting upgrades at the Rabobank Arena and Convention Center facilities. The actual required payment exceeded the estimate. There was also an over-expenditure in the amount of $19,704 in the General Fund for Public Safety. This overage is related to overtime worked for Police Department operations. These are technically considered budgetary violations and management will take steps to review periodic budget reports to ensure compliance in the future.
F.New Accounting Pronouncements
|
During the fiscal year ending June 30, 2019 the City implemented the following standards:
GASB issued Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this statement. Upon implementation, there was no effect on the City's accounting or financial reporting.
GASB issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. Upon implementation, there was no effect on the City's accounting or financial reporting.
57
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
|
F.New Accounting Pronouncements (continued)
|
Recently released standards by GASB affecting future years are as follows:
In January 2017, GASB issued Statement No. 84, Fiduciary Activities. The objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The City has elected not to early implement GASB Statement No. 84 and has not determined its effects on the City’s financial statements.
In June 2017, GASB issued Statement No. 87, Leases.The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financing of the right to use an underlying asset. The City has elected not to early implement GASB Statement No. 87 and has not determined its effects on the City’s financial statements.
In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. The objectives of this statement are to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and to simplify accounting for interest cost incurred before the end of a construction period. The City has elected not to early implement GASB Statement No. 89 and has not determined its effects on the City's financial statements.
In August 2018, GASB issued Statement No. 90, Majority Equity Interests. The objectives of this statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The City has elected not to early implement GASB Statement No. 90 and has not determined its effects on the City's financial statements.
In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with commitments extended by issuers, arrangements associated with conduit debt obligations, and related to note disclosures. The City has elected not to early implement GASB Statement No. 91 and has not determined its effects on the City's financial statements.
58
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS
|
Cash and investments as of June 30, 2019, are classified in the accompanying financial statements as follows:
|
|
|
Statement of net position:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments as of June 30, 2019, consist of the following:
|
|
|
|
|
|
Deposits with financial institutions
|
|
|
|
|
GASB Stmt. No. 31 Fair Value Adjustment
|
|
|
|
|
Investment Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code, or the City’s investment policy, where more restrictive. The table also identifies the more restrictive provision of the California Government Code or the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investment of any debt proceeds held by bond trustee's that are governed by the provisions of the City’s debt agreements, rather than the general provisions of either the California Government Code or the City’s investment policy.
|
|
|
|
Authorized Investment Types
|
|
|
|
|
|
|
U.S. Treasury Bills, Notes and Bonds
|
|
|
U.S. Government Agency Obligations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local Agency Investment Fund
|
|
|
Time Certificates of Deposit
|
|
|
Public Agency Demand Accounts
|
|
|
|
|
|
|
59
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
|
Investment Authorized by Debt Agreements
The City and its component units have $368,502 in investments held by bond trustees pledged to the payment or security of certain debt issues. These investments are held in direct obligations of, or obligations that are fully guaranteed as to principal and interest by, the United States Government or an agency thereof. The California Government Code provides that monies held by a bond trustee pledged to the payment or security of debt issues, in absence of specific statutory provisions governing the issuance of the debt, may be invested in accordance with the ordinances, resolutions, or indentures specifying the types of investments the respective bond issue’s trustee may make. The obligations described above are authorized per the investment agreements with the bond trustees and include, but are not limited to, Federal Land Bank Bonds, Federal Home Loan Bank notes and bonds, Export-Import Bank notes and guaranteed participation certificates, obligations of or fully guaranteed by the Government National Mortgage Association, Federal National Mortgage Association notes, debentures and guaranteed certificates of participation, obligations of the International Bank of Reconstruction and Development and Federal Home Loan Mortgage Corporation notes.
Interest Rate Risk
Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As part of the City’s investment policy, one of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturing evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
|
|
|
|
Remaining Maturity (In Months)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Agency Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Mortgage Corp.
|
|
|
|
|
|
|
Federal National Mortgage Assn.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Bills, Notes, and Bonds
|
|
|
|
|
|
|
Local Agency Investment Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Note 17 for Other Post-Employment Benefits
60
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
|
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations
Except as inherent by their nature as disclosed above, the City’s investments (including those held by a bond trustee) are not highly sensitive to interest rate fluctuations.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligations to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year end for each investment type. On August 5, 2011, the rating agency of Standard & Poors (S&P) assigned a negative outlook to the credit rating of the United States government. On August 8, 2011, S&P then downgraded that credit rating to AA+ from AAA.
|
|
|
Remaining as of the Year-End
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government Agency Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Mortgage Corp.
|
|
|
|
|
Federal National Mortgage Assn.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Bills, Notes, and Bonds
|
|
|
|
|
Local Agency Investment Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Note 17 for Other Post-Employment Benefits
Concentration of Credit Risk
The City’s investment policy does not limit the amount that can be invested in any one issuer beyond the limitations stipulated by the California Government Code. Investments in any one issuer (other than United States Treasury securities, mutual funds and external investment pools) that represent 5% or more of the City’s total investments are as follows.
|
|
|
|
|
|
|
|
|
|
|
|
Federal Agency Securities
|
|
|
|
|
Federal Agency Securities
|
|
|
Federal Home Loan Mortgage Corp.
|
Federal Agency Securities
|
|
|
Federal National Mortgage Assn.
|
Federal Agency Securities
|
|
|
61
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
|
Custodial Credit Risk
Custodial credit risk for deposits is the risk that the City will not be able to recover its deposits or will not be able to recover collateral securities in the possession of an outside party if a depository institution fails. The custodial credit risk for investments is the risk that the City will not be able to recover the value of its investment or collateral securities held by another party if the counterparty (e.g., broker-dealer) to a transaction fails. The California Government Code and City’s investment policy do not contain legal or policy requirements that would limit exposure to custodial credit risk for deposits or investments, other than the following provision applicable to deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
As of June 30, 2019, all of the City’s deposits with financial institutions in excess of federal depository insurance limits were held in fully collateralized accounts, as permitted by the California Government Code. As of June 30, 2019, all of the City’s investments were held by the City itself or by a broker-dealer (counterparty) other than the broker-dealer used by the City to purchase the securities in the City’s name.
Investment in State Investment Pools
Investments are stated at fair value. Fair value is established quarterly based on quoted market prices received from the securities custodian. Fair value of investments held fluctuates with interest rates. The fair value of participants’ position in the pool is the same as the value of the pool shares. The value of participants’ equity withdrawn is based on the book value of the participants’ percentage participation at the date of such withdrawal.
The California State Treasurer’s Office operates the Local Agency Investment Fund (LAIF). The LAIF is available for investment of funds administered by California local governments and special districts and is not registered with the Securities and Exchange Commission (SEC) as an investment company. The enabling legislation for the LAIF is Section 16429.1 et seq. of the California Government Code. California Asset Management Program (CAMP) is a California Joint Powers Authority established in 1989 to provide California public agencies with professional investment services. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601(p).
The LAIF and CAMP operate and report to participants on an amortized cost basis. For both the LAIF and CAMP, the income, gains, and losses, net of administration fees, are allocated based upon the participant’s average daily balance. Deposits in the LAIF and CAMP are not insured or otherwise guaranteed by the State of California, and participants share proportionally in any realized gains or losses on investments. The fair value of the LAIF and CAMP investment pools are approximately equal to the value of the pool shares.
Fair Value Measurement
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy used to measure the fair value of the asset is based on the following:
Level 1 - unadjusted price quotations in active markets/exchanges for identical assets or liabilities, that each fund has the ability to access.
Level 2 - other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, loss severities, credit risks and default rates) or other market-corroborated inputs).
Level 3 - unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each fund's own assumptions used in determining the fair value of investments).
The City has a reported fair value of investments of $492,567,705, of which $193,346,473 are valued using Level 1 inputs.
62
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 2 - CASH AND INVESTMENTS (continued)
|
These include all of the U.S Government Agency Obligations and Time Certificates of Deposit. The remaining investments are valued using Level 2 inputs.
NOTE 3 - COMPOSITION OF ACCOUNTS RECEIVABLE AND PAYABLE BALANCES
|
Accounts receivable at June 30, 2019 of the City's major individual funds and non-major and internal service funds in the aggregate, including the applicable allowance for uncollectible accounts, are as follows:
Accounts Receivable -
Governmental Funds:
|
|
Transient
Occupancy
Taxes
Fund
|
Community
Development
Block Grant
Fund
|
|
|
Transportation
Development
|
Non-Major
Governmental
Funds
|
|
Total
Governmental
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accounts Receivable - Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts Receivable -
Proprietary Funds:
|
Wastewater
Treatment
Fund
|
|
|
|
|
|
Total
Business-Type
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accounts Receivable - Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities at June 30, 2019, are composed of the following:
Accounts Payable and
Accrued Liabilities
|
|
Transient
Occupancy
Taxes
|
Community
Development
Block Grant
|
|
|
|
Transportation
Development
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accounts Payable
and Accrued Liabilities
|
|
|
|
|
|
|
|
63
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 3 - COMPOSITION OF ACCOUNTS RECEIVABLE AND PAYABLE BALANCES (continued)
|
Accounts Payable and
Accrued Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accounts Payable
and Accrued Liabilities
|
|
|
|
Accounts Payable and
Accrued Liabilities -
|
|
|
|
|
|
|
|
Business-Type Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Accounts Payable
and Accrued Liabilities
|
|
|
|
|
|
|
|
NOTE 4 - DUE FROM OTHER GOVERNMENTS
|
Amounts due from other governments at June 30, 2019 are comprised of the following:
|
|
|
|
|
Total
Governmental
Activities
|
|
|
|
|
|
|
|
|
|
|
|
Senate Bill (SB) 90 Claims
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SB 1 - Road Maint & Rehab
|
|
|
|
|
|
|
|
Department of Fish & Game
|
|
|
|
|
|
|
|
Department of Transportation
|
|
|
|
|
|
|
|
Federal Aviation Administration
|
|
|
|
|
|
|
|
Economic & Community Development
|
|
|
|
|
|
|
|
Kern Council of Governments
|
|
|
|
|
|
|
|
Kern County Waste Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
Capital asset activities for the year ended June 30, 2019, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital assets, not being depreciated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital assets, not being depreciated
|
|
|
|
|
|
|
Capital assets, being depreciated
|
|
|
|
|
|
|
Buildings, structures and improvements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and other equipment
|
|
|
|
|
|
|
Total capital assets, being depreciated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less accumulated depreciation for
|
|
|
|
|
|
|
Buildings, structures and improvements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Furniture and other equipment
|
|
|
|
|
|
|
Total accumulated depreciation
|
|
|
|
|
|
|
Total capital assets, being depreciated, net
|
|
|
|
|
|
|
Governmental activities capital assets, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital assets, not being depreciated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital assets, not being depreciated
|
|
|
|
|
|
|
Capital assets, being depreciated
|
|
|
|
|
|
|
Buildings, structures and improvements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital assets being depreciated
|
|
|
|
|
|
|
Less accumulated depreciation for
|
|
|
|
|
|
|
Buildings, structures and improvements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accumulated depreciation
|
|
|
|
|
|
|
Total capital assets, being depreciated, net
|
|
|
|
|
|
|
Business-type activities capital assets, net
|
|
|
|
|
|
65
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 5 - CAPITAL ASSETS (continued)
|
Depreciation and amortization expense was charged in the following functions in the Statement of Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
River & agricultural water
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE 6 - LAND HELD FOR RESALE
|
The City, as the Redevelopment Successor Agency, has been transferred real property to be held for a limited period that will be used for future development. The inventory for land held for resale is presented at the lower of cost or net realizable value though it is initially recorded at historical costs. Subsequently, the land could be adjusted to net realizable value if and when the City enters into agreements for development or sale of the property for less than its historical cost, when a property is impaired or when property value decreases due to market conditions.
|
|
|
|
|
|
|
Redevelopment Successor Agency - Housing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES
|
Other long-term receivables consist of the following:
|
|
|
|
|
|
|
Loans receivable in the internal service funds due from the Bakersfield
Redevelopment Agency's Southeast Project Area from the Mill Creek South
mixed use development project. This loan has an interest rate tied to the LAIF rate (currently at .244% and an eight year payment period per Agreement 06-124).
|
|
|
|
|
|
Deferred loans receivable associated with the low and moderate
income housing project. These loans bear 0-3% interest and
are not due until ten years after the loan agreement date (also
see deferred revenue at Note 9).
|
|
|
|
|
|
Mercy Housing, Madison Place Apartments, 55 year term, with 1/55 to be forgiven
each year of compliance to agreement.
|
|
|
|
|
|
Amcal Santa Fe Apartments, 55 year term, repayment begins from residual
receipts following the date that the housing project is put in service.
|
|
|
|
|
|
Down payment assistance loans.
|
|
|
|
|
|
19th Street Senior Plaza, LLC, a 55 year loan term upon recordation of
Certificate of Completion.
|
|
|
|
|
|
Park 20th Apartments, a 55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 3.0%.
|
|
|
|
|
|
Chelsea Investment Corp. - Mill Creek Village. 19th Street Senior Housing and Parking Structure. A 55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 3.0%.
|
|
|
|
|
|
Chelsea Investment Corp. - Mill Creek Village. 19th Street Senior Housing and Parking Structure. A 55 year loan term beginning upon recordation of the Certificate of Completion with an interest rate of 2.0%.
|
|
|
|
|
|
CalHOME Downpayment Assistance for a grant from the State which provided
downpayment and closing cost assistance to seventeen (17) families within the
Metropolitan Bakersfield area. The assistance was provided to those families
whose incomes were at or below 120% of area median income. The loans of up to
$40,000 are forgiven at 1/15th per year.
|
|
|
|
|
|
Golden Empire Housing, Park Place Apartments, 55 year loan term
beginning July 12, 1999, ending on July 12, 2054, with the interest payment
being deferred for first ten years, until year 2010, with an interest rate of 1.5%.
|
|
|
|
|
|
Capital Vision Equities, City Center Senior Housing, 35 year loan term beginning
on March 28, 2001, ending March 28, 2036, with an interest rate of 5.85%.
|
|
|
|
|
|
Canyon Hills Assembly of God, Senior Housing Project 30 year loan term
beginning July 30, 2001 ending July 30, 2031, with an interest rate of 0%.
|
|
67
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 7 - OTHER LONG-TERM RECEIVABLES (continued)
|
|
|
|
|
|
|
|
Mill Creek Courtyard CIC - SEPA - Senior Housing Project. A 55 year loan term beginning from the date of execution by the developer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total governmental activities receivable
|
|
|
|
|
|
|
|
|
Notes receivable in the River & Agricultural Water Fund are for the
amounts due from various customers/vendors.
These loans are non-interest bearing.
|
|
|
|
|
|
Long-term receivable under agreement 87-153(5) between the City
and Dreyer's Grand Ice Cream Inc. for additional flow and
and treatment capacity in Wastewater Treatment Plant #3.
|
|
|
|
|
|
Long-term receivable under Agreement 14-042 between the City and a
local citizen to purchase surplus land adjacent to their business. Property
was held in the Offstreet Parking Fund.
|
|
|
|
|
|
|
|
|
Total business-type noncurrent receivables
|
|
|
|
|
68
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS
|
Interfund transactions are comprised of loans, services provided, reimbursements, or transfers. Loans are reported as amounts “due to/due from” other funds or as “advances,” as appropriate, and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements occur when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental activities and business-type activities are netted as part of the consolidation required to produce the government-wide financial statements.
Interfund receivable and payable balances at June 30, 2019 were:
These balances are a result of expenditures incurred prior to the receipt of the related special revenue source.
Interfund transfers at June 30, 2019 consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transient Occupancy Taxes Fund
|
|
|
|
Community Development Block Grant Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Obligation Debt Fund
|
|
|
|
|
|
|
|
|
|
|
|
Wastewater Treatment Fund
|
|
|
|
|
|
|
|
River & Agricultural Water Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment Management Fund
|
|
|
|
|
|
|
|
|
|
|
Additional details regarding transfers in and out of various funds are provided below:
∙The $1,200,000 transfer in to the General Fund is from the Traffic Safety Fund that subsidized the cost of the traffic
69
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 8 - INTERFUND TRANSACTIONS (continued)
|
division of the police department for parking fine violations.
∙The $3,734,670 transfer from the General Fund includes a transfer to the Municipal Debt Fund of $141,670 for the repayment of a loan from PG&E for lighting improvement projects downtown as well as $45,000 to the Offstreet Parking Fund for increased security, and $1,000,000 to replenish the Facility Reserve Fund.
∙The $7,791,897 transfers from the Transient Occupancy Taxes Fund include: $7,750,000 transferred to the Capital Outlay Fund to fund a number of capital projects, $37,415 to the General Obligation Debt Fund for the repayment of a loan from PG&E for an energy efficiency retrofit at Rabobank Arena, and $4,482 to the Equipment Fund for additional funding to replace equipment.
∙The $507,545 transfer from the Community Development Block Grant (CDBG) Fund to the General Obligation Debt Fund is for the repayment of a Section 108 loan.
∙There were additional transfers to the Equipment Management Fund to purchase additional equipment for operations which include: the General Fund ($59,500), the Certified Unified Program Agency (CUPA) Fund ($30,000), the Transient Occupancy Tax Fund ($4,482), the Sewer Fund ($808,447), the Refuse Fund ($2,890,840), the River & Agricultural Water Fund ($404,110) and the Self-Insurance Fund ($148,943).
NOTE 9 - ADVANCES FROM GRANTORS AND THIRD PARTIES
|
The government-wide Statement of Net Position as well as governmental and enterprise funds defer revenue recognition in connection with resources that have been received as of year-end but not yet earned because under both the accrual and modified accrual basis of accounting revenue may be recognized only when earned. Assets recognized in connection with a transaction before the earnings process is complete are offset by a corresponding liability for advances from grantors and third parties.
The following table summarizes Advances from Grantors and third parties for the City at June 30, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State Transportation - Grants Advanced
|
|
|
Redevelopment Successor Agency - Housing
|
|
|
Total Governmental Activities
|
|
|
Business-Type Activities:
|
|
|
|
|
|
|
|
|
Total Business-Type Activities
|
|
70
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
The City entered into a long-term lease agreement in September 2005 for the acquisition of water rights with the Kern County Water Agency (KCWA). The agreement entitles the City to receive 6,500 acre feet of water per year in exchange for annual payments tied to KCWA’s Water Revenue certificates of participation from 2006 and 2008, which were used for the expansion of its water treatment facility. On March 1, 2016, KCWA issued Water Revenue Refunding Bonds. These new bonds refunded the previous debt that the City's lease payments were based upon. The City’s lease payments coincide with the amortization schedule for the related KCWA debt with the value of the related water rights at $17,671,298. The total lease obligation for the term of this agreement is as follows:
71
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
Long-term debt transactions for the fiscal year ending June 30, 2019 are summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
Payable at June 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of Participation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims and Judgments Payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims and Judgments Payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of Participation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable at June 30, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of Participation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims and Judgments Payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of Participation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims and Judgments Payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Due Within One Year
|
|
|
|
|
|
|
|
|
|
|
|
|
Due in More Than One Year:
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of Participation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims and Judgments Payable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Due in More Than One Year
|
|
|
|
|
|
The liability for pension-related debt, OPEB debt, and compensated absences for governmental activities is primarily liquidated by the General Fund with smaller portions charged to other funds in an amount proportional to the personnel costs incurred. The pension related debt and compensated absences for business-type activities will be paid by the respective proprietary funds.
Long-term debt payable at June 30, 2019, was comprised of the following individual issues:
|
|
|
|
General obligation bonds serviced by business-type activities:
|
|
|
|
|
|
$145,500,000 Wastewater Revenue Bonds 2015 Series A - The 2007 Series A bonds were refunded in 2015 with a partial call of the outstanding principal amount of $156,750,000 as well as payment of the issuance costs. The proceeds of the original Series 2007A refunded bonds were used to finance a portion of certain capital improvements at the City's wastewater and sewage collection treatment and disposal system; interest rate of 5.00%. (This issue is serviced by the Wastewater Treatment Fund.)
|
|
|
|
|
|
Unamortized Bond Premium on Wastewater Revenue Bonds
|
|
|
|
|
|
|
|
|
Certificates of Participation:
|
|
73
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
|
|
Certificates of participation serviced by Transient Occupancy Tax revenue via lease
payments from the City to the Redevelopment Successor Agency:
$25,335,000 - 2006 Refunding Certificates of Participation Series A assumed by
the City as the successor agency of the former redevelopment agency. Certificates are
due in annual principal installments of $900,000 to $2,170,000 commencing
October 1, 2006 through 2022; interest ranging from 4.00% to 4.25%.
|
|
|
|
|
|
$9,470,000 - 2006 Refunding Certificates of Participation Series B assumed by
the City as the successor agency of the former redevelopment agency. Certificates are
due in annual principal installments of $345,000 to $830,000 commencing
October 1, 2006 through 2022; interest ranging from 4.00% to 5.00%.
|
|
|
Total Certificates of Participation
|
|
|
|
|
|
General obligation note serviced by Community Development Block Grant Fund
(via the Municipal Debt Service Fund with Community Development Block Grant
Entitlement): $4,100,000 Housing & Urban Development (HUD) Section 108 Loan 2003 - Due in annual principal installments of $137,000 to $320,000 commencing
August 1, 2004 through August 2022; interest ranging from 1.75% to 4.76%.
|
|
|
|
|
|
General obligation note serviced by Community Development Block Grant Fund
(via the Municipal Debt Service Fund with Community Development Block Grant
Entitlement): $800,000 HUD Section 108 Loan 2003 - due in annual principal
installments of $24,000 to $61,000 commencing August 1, 2005 through August
2023; interest ranging from 1.61% to 4.76%.
|
|
|
|
|
|
General obligation note serviced by Community Development Block Grant Fund
(via the Municipal Debt Service Fund with Community Development Block Grant
Entitlement), $1,800,000 HUD Section 108 Loan 009 - due in annual principal
installments of $140,000 to $230,000 commencing August 2010 through August
2021; interest ranging from 0.56% to 3.73%.
|
|
|
|
|
|
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund): $237,033 PG&E loan used for an energy efficient lighting upgrade at in the Downtown area of the City. The payments will be made on PG&E bills starting March 2015. This loan contains no interest charges.
|
|
|
|
|
|
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund): $47,636 PG&E loan used for an energy efficient lighting upgrade at Police Headquarters. The payments will be made starting September 13, 2017 in 29 monthly payments of $1,642.62. This loan contains no interest charges.
|
|
|
|
|
|
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund): $126,274 PG&E loan used for an energy efficient lighting upgrade at Rabobank Theater. The payments will be made starting March 12, 2018 in 54 monthly payments of $2,338.40. This loan contains no interest charges.
|
|
74
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
|
|
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ): $1,420,717 PG&E loan used for an energy efficient lighting upgrade throughout the city. The payments will be made in 80 monthly payments of $17,758.96. This loans contain no interest charges.
|
|
|
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ): $1,979,307 PG&E loan used for an energy efficient lighting upgrade throughout the city. The payments will be made in 80 monthly payments of $24,137.89. This loans contain no interest charges.
|
|
|
General obligation loan serviced by General Fund (via the Municipal Debt Service Fund ): $736,517 PG&E loan used for an energy efficient lighting upgrade throughout the city. The payments will be made in 46 monthly payments of $16,011. This loans contain no interest charges.contain no interest charges.
|
|
|
General obligation notes serviced by Business-Type Activities: $14,263,555 note payable to California State Water Resources Control Board - Original advances of $14,954,054 payable without interest in twenty annual installments beginning in fiscal year 2004-05 by the Wastewater Treatment Fund.
|
|
|
Total general obligation notes/loans payable
|
|
|
|
|
75
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Compensated Absences
|
|
A summary of the City's debt service requirements outstanding at June 30, 2019, is as follows:
|
|
|
|
|
|
|
|
|
|
Business-Type Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Claims and Judgments Payable included
above that bear no interest and have
no schedule of repayment terms
|
|
|
|
|
|
Less: Kern River Levee District Payable
included above that bears no interest and
has no schedule of repayment terms
|
|
|
|
|
|
Less: Unamortized premium for Wastewater
revenue bond
|
|
|
|
|
|
Less: Compensated Absences included above that bear
no interest and have no schedule of repayment terms
|
|
|
|
|
|
Total Principal with Scheduled
Repayment Terms
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt Service Requirements
|
|
|
|
|
76
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 11 - LONG-TERM DEBT (continued)
|
The annual requirement to amortize the principal and interest on long-term debt at June 30, 2019 is as follows:
|
|
Government-Type Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
77
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 12 - PLEDGED REVENUES
|
The City has pledged net revenues generated by the Wastewater Enterprise Fund to repay a total of $151.5 million in wastewater revenue bonds series 2015A issued to finance a portion of the expansion and improvement of the City's wastewater and sewage collection and disposal system.
Each fiscal year, net revenues means all revenues of the enterprise fund received during the fiscal year less operation and maintenance costs for that fiscal year. The pledge of net revenues does not constitute a lien upon any property of the City. Proceeds of the bonds provided financing for expansion and upgrade of Wastewater Treatment Plant #3, and improvements to Wastewater Treatment Plant #2. The bonds are payable through 2034 for 2015A bonds. The covenants of the ordinances authorizing the bonds include, among other things, an obligation of the City to fix, prescribe, revise, and collect rates, fees, and charges for the services and facilities of the system and revise the same whenever necessary, which will provide gross revenues in each fiscal year sufficient to pay the cost of operation and maintenance of the system; one hundred twenty five percent (125%) of the bond service requirement becoming due in such fiscal year on the outstanding bonds; plus one hundred percent (100%) of all reserve and other payments required to be made pursuant to the ordinances authorizing the bonds.
NOTE 13 - DEFERRED INFLOWS OF RESOURCES
|
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the City recognized deferred inflows of resources in the governmental fund financial statements. These items are an acquisition of net fund balance by the City that is applicable to a future reporting period. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. Under the modified accrual basis of accounting, it is not enough that revenue has been earned if it is to be recognized in the current period. Revenue must also be susceptible to accrual (i.e., measurable and available to finance expenditures of the current period). Governmental funds report deferred revenues in connection with receivables for revenues not susceptible to accrual, as deferred inflows of resources.
Deferred inflows of resources balances for the year ended June 30, 2019 were as follows:
|
|
|
|
|
|
|
California Water Receivable
|
|
|
Code Enforcement Receivable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Neighborhood Stabilization
|
|
|
|
|
|
|
|
78
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
Fund balances for all major and non-major governmental funds as of June 30, 2019 are as follows (see Note 1 for description of the categories used):
|
|
|
Transient
Occupancy
Taxes Fund
|
Community
Development
Block Grant
Fund
|
|
|
|
Transportation
Development
Fund
|
Non-Major
Governmental
Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development services grants
|
|
|
|
|
|
|
|
|
|
Community redevelopment projects
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assessment district projects
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal & Professional services
|
|
|
|
|
|
|
|
|
|
City facility construction & refurbishment projects
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public works
improvement contracts
|
|
|
|
|
|
|
|
|
|
Park improvement contracts
|
|
|
|
|
|
|
|
|
|
Tourism and promotional contracts
|
|
|
|
|
|
|
|
|
|
Development Services contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Facility replacement reserve
|
|
|
|
|
|
|
|
|
|
Appropriation for next
year's budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
79
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 14 - FUND BALANCES (continued)
|
|
|
|
Transient
Occupancy
Taxes Fund
|
Community
Development
Block Grant
Fund
|
|
|
|
Transportation
Development
Fund
|
Non-Major
Governmental
Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal & Professional services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Public works - General
Services department
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highway and road projects
|
|
|
|
|
|
|
|
|
|
Tourism and promotional contracts
|
|
|
|
|
|
|
|
|
|
Park development projects
|
|
|
|
|
|
|
|
|
|
Community development projects
|
|
|
|
|
|
|
|
|
|
Other miscellaneous agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriation for next year's budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE 15 - REIMBURSABLE DEVELOPER COSTS
|
Reimbursable developer costs of $1,981,430 at June 30, 2019 are included in customer deposits in the Domestic Water Fund which represent amounts due to developers for construction of water mainline extensions and certain other water facilities. For mainline extensions transferred to the City after June 30, 1982, the developers are to be reimbursed based on revenues generated from the water sales associated with these mainline extensions. The City is required to reimburse 2.5% of the cost of the extension on a yearly basis with the total amount to be reimbursed within 40 years.
80
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS
|
General
The City of Bakersfield provides pension benefits to eligible full-time employees in three separate plans: the Miscellaneous Plan, the Safety Fire Plan, and the Safety Police Plan, all of which are included in the Public Agency portion of the California Public Employees’ Retirement System (CalPERS).
Miscellaneous Plan
Plan Description
The City’s Miscellaneous Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of-living adjustments (COLA), and death benefits to plan members and beneficiaries. The Miscellaneous Plan is an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employees’ Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate comprehensive annual financial report. Copies of the CalPERS' annual financial report may be obtained from their Executive Office - 400 P Street – Sacramento, CA 95814.
Benefits Provided
The benefits provided through the CalPERS Miscellaneous Plan include retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the Miscellaneous employee plan. Tier I is applicable to all employees hired before August 20, 2008 with a formula of 3% at age 60. Earliest retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is applicable to employees hired after August 20, 2008 and before January 1, 2013 with a formula of 2.7% at age 55. Earliest retirement age is 50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to employees hired after January 1, 2013 with a formula of 2% at age 62, which is a result of the Public Employees' Pension Reform Act of 2013 (PEPRA). PEPRA also lowered the final compensation and contribution requirements. Earliest retirement age is 52 with final compensation, subject to the PEPRA limit of $149,016, based on 36 months at the highest rate of pay received.
Contributions and Employees Covered
Active plan members in the CalPERS Miscellaneous Plan may be required to contribute a particular percent of their annual pay depending on the applicable plan they fall under. Tier I and Tier II employees will pay 8% of their salary while those employees under PEPRA (Tier III) will pay 5.5% of their salary. In addition, employees in Tier I and Tier II have 7.5% of their contribution picked-up by the City after five years of service.
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer Paid Member Contributions or situations where members are paying a portion of the employer contribution.
As of June 30, 2018 (the measurement date), there are 947 active employees and 913 inactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2019, the employee contribution rate was 7.588 percent of annual pay, and the employer’s minimum contribution rate was 26.346 percent of annual payroll. Employer contribution rates may change if plan contracts are amended.
81
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
Actuarial Methods and Assumptions
For the measurement period ended June 30, 2018 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2017 total pension liability. The June 30, 2017 and the June 30, 2018 total pension liabilities were based on the following actuarial methods and assumptions:
|
|
|
|
|
|
|
|
Fair Value of Assets. For details, see June 30, 2015 Funding Valuation Report
|
|
|
|
|
|
Varies by Entry Age and Service
|
|
|
|
|
Investment Rate of Return
|
|
|
|
|
[a] Net of Pension Plan Investment and Administrative Expenses; includes inflation.
[b] Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report.
All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study dated January 2014 which was derived from data collected for the period from 1997 to 2011, including updates to salary increases, mortality and retirement rates. The 2014 Experience Study report can be obtained at CalPERS’ website under Forms and Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
82
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS' Board effective on July 1, 2015.
|
|
|
Real Return
Years 1-10 [a]
|
Real Return
Years 11+ [b]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[a] An expected inflation of 2.0% used for this period.
[b] An expected inflation of 2.92% used for this period.
Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:
|
|
|
|
|
Total Pension
Liability
[1]
|
Plan Fiduciary
Net Position
[2]
|
Net Pension
Liability/(Asset)
[3]=[1] - [2]
|
|
Balance at June 30, 2017 [a]
|
|
|
|
|
Changes Recognized for the
Measurement Period:
|
|
|
|
|
|
|
|
|
|
- Interest on the Total
Pension Liability
|
|
|
|
|
- Changes of Benefit Terms
|
|
|
|
|
- Differences between Expected
and Actual Experience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Contributions - Employer
|
|
|
|
|
- Contributions - Employees
|
|
|
|
|
|
|
|
|
|
- Benefit Payments Including
Refund of Employee Contributions
|
|
|
|
|
- Administrative Expenses
|
|
|
|
|
- Other Misc Income/(Expense) [b]
|
|
|
|
|
Net Changes during 2017-18
|
|
|
|
|
Balance at June 30, 2018 [a]
|
|
|
|
[a] The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary, self-insurance and OPEB expense. This may be different from the plan assets reported in the funding actuarial valuation report.
[b] During Fiscal Year 2017-18, as a result of Governmental Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefits Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
83
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
|
|
Discount Rate - 1%
(6.15%)
|
Current Discount
Rate (7.15 %)
|
Discount Rate + 1%
(8.15%)
|
|
Plan Net Pension
Liability/(Asset)
|
|
|
|
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is a five year straight-line amortization. All other amounts are amortized using straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2018 measurement date is 3.7 years, which is obtained by dividing the total service years of 10,005 (the sum of remaining lifetimes of active employees) by 2,685 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2018), the net pension liability/(asset) is $169,275,636. For the measurement period ending June 30, 2018 (the measurement date), the City incurred a pension expense/(income) of $19,354,840 for the plan. Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the employer.
As of June 30, 2019, the City had deferred outflows of resources related to pensions of $18,084,329 for contributions made subsequent to the measurement date, $13,333,762 for changes of assumptions, and $1,330,337 for the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions were $2,239,589 for changes in assumptions and $7,583,774 for differences between expected and actual experiences.
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension revenue and expense amortized annually as follows:
|
Measurement Periods
Ended June 30:
|
Deferred Outflows/(Inflows)
of Resources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
84
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
Safety Fire Plan
Plan Description
The City’s Safety Fire Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The Safety Fire Plan is an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employees’ Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate comprehensive annual financial report. Copies of the CalPERS' annual financial report may be obtained from their Executive Office - 400 P Street – Sacramento, CA 95814.
Benefits Provided
The benefits provided through the CalPERS Safety Fire Plan include retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the Safety Fire employee plan. Tier I is applicable to all employees hired before January 1, 2011 with a formula of 3% at age 50. Earliest retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is applicable to employees hired after January 1, 2011 and before January 1, 2013 with a formula of 2.0% at age 50. Earliest retirement age is 50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to employees hired after January 1, 2013 with a formula of 2% at age 57, which is a result of PEPRA. PEPRA also lowered the final compensation and contribution requirements. Earliest retirement age is 50 with final compensation, subject to the PEPRA limit of $149,016, based on 36 months at the highest rate of pay received.
Contributions and Employees Covered
Active plan members in the CalPERS Safety Fire Plan may be required to contribute a particular percent of their annual pay depending on the applicable plan they fall under. Tier I and Tier II employees will pay 9% of their salary while those employees under PEPRA (Tier III) will pay 11% of their salary. In addition, employees in Tier I have 8% of their contribution picked-up by the City after five years of service.
Section 20814(c) of the California PERL requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer Paid Member Contributions or situations where members are paying a portion of the employer contribution.
As of June 30, 2018 (the measurement date), there are 171 active employees and 225 inactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2019, the employee contribution rate was 9.200 percent of annual pay, and the employer’s minimum contribution rate was 42.058 percent of annual payroll. Employer contribution rates may change if plan contracts are amended.
85
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
Actuarial Methods and Assumptions
For the measurement period ended June 30, 2018 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2017 total pension liability. The June 30, 2017 and the June 30, 2018 total pension liabilities were based on the following actuarial methods and assumptions:
|
|
|
|
|
|
|
|
Fair Value of Assets. For details, see June 30, 2015 Funding Valuation Report.
|
|
|
|
|
|
Varies by Entry Age and Service
|
|
|
|
|
Investment Rate of Return
|
|
|
|
|
[a] Net of Pension Plan Investment and Administrative Expenses; includes inflation.
[b]Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report.
All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study dated January 2014 which was derived from data collected for the period from 1997 to 2011, including updates to salary increases, mortality and retirement rates. The 2014 Experience Study report can be obtained at CalPERS’ website under Forms and Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
86
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2015.
|
|
|
Real Return
Years 1-10 [a]
|
Real Return
Years 11+ [b]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[a] An expected inflation of 2.00% used for this period.
[b] An expected inflation of 2.92% used for this period.
Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:
|
|
|
|
|
Total Pension
Liability
[1]
|
Plan Fiduciary
Net Position
[2]
|
Net Pension
Liability/(Asset)
[3]=[1] - [2]
|
|
Balance at June 30, 2017 [a]
|
|
|
|
|
Changes Recognized for the
Measurement Period:
|
|
|
|
|
|
|
|
|
|
- Interest on the Total
Pension Liability
|
|
|
|
|
- Changes of Benefit Terms
|
|
|
|
|
- Differences between Expected
and Actual Experience
|
|
|
|
|
|
|
|
|
|
- Plan to Plan Resource Movement
|
|
|
|
|
- Contributions - Employer
|
|
|
|
|
- Contributions - Employees
|
|
|
|
|
|
|
|
|
|
- Benefit Payments Including
Refund of Employee Contributions
|
|
|
|
|
- Administrative Expenses
|
|
|
|
|
- Other Misc Income/(Expense) [b]
|
|
|
|
|
Net Changes during 2017-18
|
|
|
|
|
Balance at June 30, 2018 [a]
|
|
|
|
[a] The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary, self-insurance and OPEB expense. This may be different from the plan assets reported in the funding actuarial valuation report
[b] During Fiscal Year 2017-18, as a result of Governmental Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefits Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.
87
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
|
|
Discount Rate - 1%
(6.15%)
|
Current Discount
Rate (7.15%)
|
Discount Rate + 1%
(8.15%)
|
|
Plan Net Pension
Liability/(Asset)
|
|
|
|
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is a five year straight-line amortization. All other amounts are amortized using straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2018 measurement date is 5.6 years, which is obtained by dividing the total service years of 2,414 (the sum of remaining lifetimes of active employees) by 432 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2018), the net pension liability/(asset) is $84,166,156. For the measurement period ending June 30, 2018 (the measurement date), the City incurred a pension expense/(income) of $10,302,023 for the plan. Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the employer.
As of June 30, 2019, the City had deferred outflows of resources related to pensions of $8,410,816 for contributions made subsequent to the measurement date, $10,138,817 for changes of assumptions, $425,206 for the differences between expected and actual experiences and $882,935 for the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions were $2,252,034 for changes in assumptions and $3,155,918 for differences between expected and actual experiences.
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension revenue and expense amortized annually as follows:
|
Measurement Periods
Ended June 30:
|
Deferred Outflows/(Inflows)
of Resources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
89
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
Safety Police Plan
Plan Description
The City’s Safety Police Plan is a defined benefit pension plan that provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The Safety Police Plan is an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions, as well as other requirements, is established by State statutes within the Public Employees’ Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate comprehensive annual financial report. Copies of the CalPERS' annual financial report may be obtained from their Executive Office - 400 P Street – Sacramento, CA 95814.
Benefits Provided
The benefits provided through the CalPERS Safety Police Plan include retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The City has three tiers through CalPERS under the Safety Police employee plan. Tier I is applicable to all employees hired before January 1, 2011 with a formula of 3% at age 50. Earliest retirement age is 50 with final compensation based on 12 months at the highest rate of pay received. Tier II is applicable to employees hired after January 1, 2011 and before January 1, 2013 with a formula of 2.0% at age 50. Earliest retirement age is 50 with final compensation based on 36 months at the highest rate of pay received. Tier III is applicable to employees hired after January 1, 2013 with a formula of 2% at age 57, which is a result of the PEPRA. PEPRA also lowered the final compensation and contribution requirements. Earliest retirement age is 50 with final compensation, subject to the PEPRA limit of $149,016, based on 36 months at the highest rate of pay received.
Contributions and Employees Covered
Active plan members in the CalPERS Safety Police Plan may be required to contribute a particular percent of their annual pay depending on the applicable plan they fall under. Tier I and Tier II employees will pay 9% of their salary while those employees under PEPRA (Tier III) will pay 12.50% of their salary. In addition, employees in Tier I have 8% their contribution picked-up by the City after five years of service.
Section 20814(c) of the California PERL requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
As of June 30, 2018 (the measurement date), there are 373 active employees and 432 inactive employees or beneficiaries receiving benefits. For the fiscal year ended June 30, 2019, the employee contribution rate was 9.671 percent of annual pay, and the employer’s minimum contribution rate was 46.810 percent of annual payroll. Employer contribution rates may change if plan contracts are amended.
90
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
Actuarial Methods and Assumptions
For the measurement period ended June 30, 2018 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2017 total pension liability. The June 30, 2017 and the June 30, 2018 total pension liabilities were based on the following actuarial methods and assumptions:
|
|
|
|
|
|
|
|
Fair Value of Assets. For details, see June 30, 2015 Funding Valuation Report
|
|
|
|
|
|
Varies by Entry Age and Services
|
|
|
|
|
Investment Rate of Return
|
|
|
|
|
[a] Net of Pension Plan Investment and Administrative Expenses; includes inflation.
[b] Pre-retirement and Post-retirement mortality rates include 20 years of projected mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report.
All other actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study dated January 2014 which was derived from data collected for the period from 1997 to 2011, including updates to salary increases, mortality and retirement rates. The 2014 Experience Study report can be obtained at CalPERS’ website under Forms and Publications.
Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB Statement No. 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
91
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2015.
|
|
|
Real Return
Years 1-10 [a]
|
Real Return
Years 11+ [b]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[a] An expected inflation of 2.00% used for this period.
[b] An expected inflation of 2.92% used for this period.
Changes in Net Pension Liability
The change in the Net Pension Liability recognized over the measurement period is as follows:
|
|
|
|
|
Total Pension
Liability
[1]
|
Plan Fiduciary
Net Position
[2]
|
Net Pension
Liability/(Asset)
[3]=[1] - [2]
|
|
Balance at June 30, 2017 [a]
|
|
|
|
|
Changes Recognized for the
Measurement Period:
|
|
|
|
|
|
|
|
|
|
- Interest on the Total
Pension Liability
|
|
|
|
|
- Changes of Benefit Terms
|
|
|
|
|
- Differences between Expected
and Actual Experience
|
|
|
|
|
|
|
|
|
|
- Plan to Plan Resource Movement
|
|
|
|
|
- Contributions - Employer
|
|
|
|
|
- Contributions -Employees
|
|
|
|
|
|
|
|
|
|
- Benefit Payments Including
Refunds of Employee Contributions
|
|
|
|
|
- Administrative Expenses
|
|
|
|
|
- Other Misc Income/(Expense) [b]
|
|
|
|
|
Net Changes during 2017-18
|
|
|
|
|
Balance at June 30, 2018 [a]
|
|
|
|
[a] The fiduciary net position includes receivables for employee service buybacks, deficiency reserves, fiduciary self-insurance and OPEB expense. This may be different from the plan assets reported in the funding actuarial valuation report.
[b] During Fiscal Year 2017-18, as a result of Governmental Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefits Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits for participation in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75
92
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
|
|
Discount Rate - 1%
(6.15%)
|
Current Discount
Rate (7.15 %)
|
Discount Rate + 1%
(8.15%)
|
|
Plan Net Pension
Liability/(Asset)
|
|
|
|
Recognition of Gains and Losses
Under GASB Statement No. 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is a five year straight-line amortization. All other amounts are amortized using straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
The expected average remaining service lifetime (EARSL) for the plan for the June 30, 2018 measurement date is 5.4 years, which is obtained by dividing the total service years of 4,910 (the sum of remaining lifetimes of active employees) by 907 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of the start of the measurement period (July 1, 2018), the net pension liability/(asset) is $184,067,614. For the measurement period ending June 30, 2018 (the measurement date), the City incurred a pension expense/(income) of $23,640,709 for the plan. Note that no adjustments have been made for contributions subsequent to the measurement date. Adequate treatment of any contributions made after the measurement date is the responsibility of the employer.
As of June 30, 2019, the City had deferred outflows of resources related to pensions of $18,902,246 for contributions made subsequent to the measurement date, $18,750,746 for changes of assumptions, $3,696,138 for differences between expected and actual experiences and $846,211 for the net difference between projected and actual earnings on pension plan investments. Deferred inflows of resources related to pensions were $4,124,998 for changes in assumptions and $2,326,656 for differences between expected and actual experiences.
93
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 16 - EMPLOYEE RETIREMENT BENEFITS (continued)
|
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in future pension revenue and expense amortized annually as follows:
|
Measurement Periods
Ended June 30:
|
Deferred Outflows/(Inflows)
of Resources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CITYWIDE PENSION PLAN TOTALS
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Outflows of Resources
|
|
|
|
|
|
Contributions Made Subsequent to Measurement Date
|
|
|
|
|
|
Differences Between Expected and
Actual Experiences
|
|
|
|
|
|
Differences Between Projected and
Actual Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Total Deferred Outflows of Resources
|
|
|
|
|
|
Deferred Inflows of Resources
|
|
|
|
|
|
Differences Between Expected and
Actual Experience
|
|
|
|
|
|
Differences Between Projected and
Actual Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Total Deferred Inflows of Resources
|
|
|
|
|
94
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB)
|
Plan description: In addition to the employee retirement benefits described in Note 16, the City provides a single-employer Post-Employment Retiree Medical Benefit Plan in accordance with a resolution approved by City Council. Two primary plans exist. All employees with a retirement date prior to January 1, 1985 were eligible for benefits upon retirement. Post-1985 employees must retire with fifteen years accumulated service upon retirement to participate. The service requirement is waived for safety employees who retire with a job-related disability.
Employees hired after the dates listed below will not participate in either of the retiree health subsidy programs mentioned:
|
|
|
|
|
|
|
Management and Supervisory
|
|
|
|
|
|
|
|
Benefits provided: For employees hired prior to the dates listed above, the City provides lifetime postretirement medical benefits for eligible retirees and qualified dependents with a choice of three medical options: Blue Shield PPO, Kaiser High Deductible Health Plan, and Kaiser Permanente HMO. Mental Health benefits are carved out and provided through Optum Behavioral Health. After reaching eligibility for Medicare, retirees are offered a choice of Blue Shield PPO, Blue Shield Medicare Advantage HMO or Kaiser Senior Advantage HMO. Retirees may also elect dental coverage but must self-pay the premiums for such coverage. Vision coverage is not offered to retirees. Retiree rates are unblended from employee rates.
Employees covered by benefit terms: At June 30, 2019 the following employees were covered by the benefit terms:
|
Inactive employees or beneficiaries currently receiving benefit payments
|
|
|
|
|
|
|
|
Contributions. The City contributes 3% of the lowest single-party rate per year of service to a maximum of 90%. If the dollar amount is greater than the premium for a retiree covered under one of the Medicare Advantage plans, the retiree receives a cash reimbursement of the difference to a maximum of $42.50 per month. The City also contributes 42% of the Blue Shield PPO for all retirees who elect the Blue Shield PPO plan, excluding Miscellaneous employees hired after April 1, 1996 and Safety employees hired after April 1, 1998. The City has approximately 513 active employees who are eligible for the same level of post-employment benefits and 757 retirees (and/or dependents) currently receiving benefits as of the actuarial dated June 30, 2019. There is not a separate, audited GAAP-basis pension report available for the Post-Employment Retiree Medical Benefit Plan.
95
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
|
The City's net OPEB liability was measured as of June 30, 2018, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of that date.
Actuarial assumptions. The total OPEB liability as of June 30, 2018 was determined by an actuarial valuations as of June 30, 2018. The actuarial assumptions used in the June 30, 2018 valuation were based on the December 2017 experience study performed by the CalPERS actuary derived from the data collected during fiscal years 1997 to 2015.
|
|
Detailed census data, premium data and/or claim experience, and summary plan descriptions for OPEB are provided by the City of Bakersfield
|
|
|
Entry Age Normal, Level percent of pay
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wage inflation rate (2.75%) plus merit and promotional increases of between 3.44% to 13.02% based on years of service
|
The long-term expected rate of return on OPEB Plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB Plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage, and by adding expected inflation and subtracting expected investment expenses and a risk margin. The target allocation and projected arithmetic real rates of return, after deducting inflation, but before deducting investment expenses, used in the derivation of the long-term expected rate of return assumption are summarized in the following table:
|
|
|
Long-Term (Arithmetic) Expected Real Rate of Return
|
|
|
|
|
|
Developed International Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate. The discount rate used to measure the total OPEB liability was 5.00% as of June 30, 2018 and 5.00% as of June 30, 2017. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that City contributions will be made at the rates equal to the actuarially determined contribution rates. For this purpose, only City contributions that are intended to fund benefits of current plan members and their beneficiaries are included. Projected City contributions that are intended to fund the service costs of future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the OPEB Plan's assets were projected to be sufficient to make all projected OPEB payments for current plan members.
96
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
|
Net OPEB Liability (continued)
|
Therefore, the long-term expected rate of return on OPEB Plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability as of both June 30, 2018 and June 30, 2017.
Changes in the Net OPEB Liability
|
|
|
|
|
|
Plan Fiduciary Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Differences between expected and actual experience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sensitivity of the net OPEB liability to changes in the discount rate. The following presents the net OPEB liability of the City as of June 30, 2018, calculated using the discount rate of 5.00%, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (4.0 percent) or 1-percentage point higher (6.0 percent) than the current discount rate:
|
|
|
|
|
|
Net OPEB liability (asset) as of June 30, 2018
|
|
|
|
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents the net OPEB liability of the City as of June 30, 2018, calculated using the current healthcare cost trend rates as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
|
|
|
Healthcare Cost Trend Rates*
|
|
|
Net OPEB liability (asset) as of June 30, 2018
|
|
|
|
*Current trend rates: 7.00% graded to 4.50% over 10 year for City "Years of Service" Formula subsidy, 7.00% graded to 4.50% over 10 years for Special 42% Contribution Non-Medicare subsidy, and 6.50% graded to 4.50% over 8 years for Special 42% Contribution Medicare subsidy.
OPEB Plan fiduciary net position. Detailed information about the OPEB Plan's fiduciary net position is available in the separately issued actuarial report.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2018, the City recognized OPEB expense of $3,624,339. At June 30, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
97
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 17 - OTHER POST-EMPLOYMENT BENEFITS (OPEB) (continued)
|
|
|
|
|
|
|
Deferred Outflows of Resources
|
Deferred Inflows of Resources
|
Deferred Outflows of Resources
|
Deferred Inflows of Resources
|
|
|
|
|
|
|
|
Net difference between projected and actual earnings on OPEB Plan investments
|
|
|
|
|
|
Net excess of projected over actual earnings on OPEB Plan investments
|
|
|
|
|
|
City contributions subsequent to the measurement date
|
|
|
|
|
|
|
|
|
|
|
The amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB are recognized in OPEB expenses as follows:
|
|
Governmental Activities Amount
|
Business-type Activities Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
98
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 18 -SPECIAL ASSESSMENT DISTRICTS
|
In addition to the Long-Term Obligations discussed in Note 11, the following Long-Term Obligations have been issued in the name of Special Assessment Districts or Agencies of the City. Neither the City, nor its Agencies, are obligated in any manner for the repayment of these obligations. The City acts as an agent to property owners for the collection and repayment of Special Assessment Debt.
|
|
|
Outstanding at June 30, 2019
|
|
Assessment District 99-1*
|
|
|
|
Assessment District 99-2*
|
|
|
|
Assessment District 01-1*
|
(Ming at Allen/Mountain Vista; Hampton Place)
|
|
|
Assessment District 01-2*
|
(Seven Oaks West II/Riverwalk/Southern Oaks)
|
|
|
Assessment District 01-3*
|
(Mountain Vista/San Lauren)
|
|
|
Assessment District 02-1*
|
(Avalon/Belsera/Montara/The Woods)
|
|
|
Assessment District 03-1*
|
(Brighton Place/Silver Creek II)
|
|
|
Assessment District 03-2*
|
(Buena Vista Ranch/Belsera II/Monstera II/Olive Park II)
|
|
|
Assessment District 03-3*
|
(Seven Oaks West III/Brighton Place)
|
|
|
Assessment District 04-1**
|
(Countryside/The Homestead)
|
|
|
Assessment District 04-2**
|
|
|
|
Assessment District 04-3**
|
|
|
|
|
|
|
|
Assessment District 05-3**
|
(Liberty II/Village Green/Tesoro/Encanto)
|
|
|
Assessment District 06-1**
|
(Etcheverry/Lin II/University Park)
|
|
|
|
|
|
|
|
|
|
|
*Note: These ten districts were refinanced into a consolidated district (12-01) with the California Statewide Communities Development Authority (CSCDA). The City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates.
|
*Note: These ten districts were refinanced into a consolidated district (12-01) with the California Statewide Communities Development Authority (CSCDA). The City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates.
|
|
**Note: These five districts were refinanced into a consolidated district (15-01). The City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates.
|
**Note: These five districts were refinanced into a consolidated district (15-01). The City continues to account for the underlying obligation of each district to properly monitor the individual principal balances and various maturity dates.
|
99
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 19 - RISK MANAGEMENT
|
Self-Insurance
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City established a Self-Insurance Fund (an internal service fund) to account for and finance its uninsured risks of loss. Under this program, the Self-Insurance Fund provides coverage for up to $500,000 for each workers’ compensation claim and $1,000,000 for each liability claim. The City participates in a joint powers authority for workers’ compensation claims in excess of coverage provided by the fund up to statutory limits and participates in a joint powers authority for any excess liability claims. All funds of the City participate in the program and are charged for their share of claim expenditures. The claims liability of $48,527,301 at June 30, 2019 is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. An estimate of incurred but not reported claims has been included in the liability based on the various percentages of loss reserves.
Changes in the fund's claims liability over the last three fiscal years is shown below:
|
|
Liability
at Beginning
of Year
|
Current Year
Claims and
Changes in
Estimates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint Powers Authority
The City has obtained excess liability coverage through the Authority for California Cities Excess Liability (ACCEL), a joint powers authority of medium-size California municipalities. ACCEL pools catastrophic general liability, automobile liability and public officials' errors and omissions losses, or purchases excess insurance, depending on market conditions. Each member's share of pooled costs will depend on the catastrophic losses of all the members. In addition, the cost to a member city will also depend on that member's own loss experience. Entities with a consistent record of costly claims will pay more than entities with a consistent record of less serious claims activity.
In order to provide funds to pay claims, or purchase excess insurance, ACCEL collects a deposit from each member. The deposits will be credited with investment income at the rate earned on ACCEL's investments. Based on information received from ACCEL as of June 30, 2019, the City had $617,875 on deposit with ACCEL out of a total of approximately $7,945,076.
The following municipalities are also members of ACCEL: Palo Alto, Santa Barbara, Visalia, Modesto, Ontario, Santa Monica, Anaheim, Santa Cruz, Mountain View, Burbank, Monterey, and Gardena. A representative from each member city, appointed to the position by their respective city councils, serves on the Board of Directors (Board) of ACCEL. The Board is responsible for deciding the risks ACCEL will underwrite, monitoring the costs of large claims and arranging financial programs. Each member of the Board has an equal vote in matters concerning ACCEL.
As of June 30, 2019, ACCEL had no long-term debt. Included in total liabilities is an estimated retrospectively rated refund of $11,019,607. Complete financial statements of ACCEL can be obtained at the City’s Finance Department at 1600 Truxtun Avenue, Bakersfield, CA 93301.
100
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 19 - RISK MANAGEMENT (continued)
|
A summary of the financial information for ACCEL at June 30, 2019 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total members' net position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in members' net position
|
|
|
|
|
NOTE 20 - COMMITMENTS AND CONTINGENCIES
|
Several claims and suits have been filed against the City in the normal course of business. In the opinion of management and the City Attorney, the potential liability of the City for such claims will not have a material adverse effect on the financial statements of the City. Also, the City has certain commitments under long-term construction projects which will be funded out of future revenues.
The entire capacity of the former sanitary landfill has been used. The State has required environmental closure and capping of the City's former sanitary landfill and remediation of the adjacent burn dump. Although these two waste disposal areas are adjacent to each other, the City completed the remediation of the burn dump separately, through the State's Expedited Remedial Action Program, in 1998. The cost of remediation for the burn dump of $1.8 million was funded by the City's Refuse Service Fund and was expensed in prior fiscal years. The landfill closure was completed in May 2013 at a cost of $4.8 million. The City’s net share of this joint City/County project was approximately $3 million. Kern County reimbursed the City for the remaining $1.8 million.
The City will be required to perform post-closure monitoring and maintenance of the landfill after it is closed and capped. This will result in an ongoing annual cost of approximately $150,000. The City will be responsible for about $125,000 of these annual charges because most of these costs will be for the landfill gas management system, which is the City's responsibility. Kern County will be responsible for reimbursing the City for the remainder. City management anticipates all closure and post-closure costs being covered by annual Refuse Service Fund revenues. These estimates of cost are subject to future adjustment for inflation or deflation, technology, or applicable laws or regulations.
101
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded as encumbrances in order to reserve that portion of the applicable appropriation. Encumbrances outstanding as of June 30, 2019 consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
Transient Occupancy Taxes Fund
|
|
|
Community Development Block Grant Fund
|
|
|
|
|
|
|
|
|
|
|
|
Transportation Development Fund
|
|
|
|
|
|
State (TDA) Transportation Fund
|
|
|
|
|
|
|
|
|
|
|
|
Wastewater Treatment Fund
|
|
|
|
|
|
River & Agriculture Water Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment Management Fund
|
|
|
|
|
|
|
|
102
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 22 - CONDUIT DEBT OBLIGATIONS
|
The City has been associated with the issuance of various health care, residential care, mortgage, commercial and industrial development debt issues. These debt obligations were issued under provisions of State and Federal laws that explicitly state that they do not constitute any indebtedness of the City. The City’s sole involvement with these bonds was their issuance under the City’s name or the City Council’s authorization. As such, the following conduit debt obligations are not reflected in the accompanying basic financial statements:
|
|
|
|
City of Bakersfield - Cottonwood Village Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Cottonwood Court Housing Bond,
|
|
|
|
|
|
City of Bakersfield - St. John Manor Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Coventry Apartments Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Catholic Healthcare West 501(c)(3)
|
|
|
Nonprofit Bond, Series A thru L
|
|
|
City of Bakersfield - Descanso Place Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Bakersfield Family Apartments Housing
|
|
|
|
|
|
City of Bakersfield - Camellia Place Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Eucalyptus Village I Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Eucalyptus Village II Housing Bond,
|
|
|
|
|
|
City of Bakersfield - American Baptist Homes of The West
|
|
|
501(c)(3) Nonprofit Bond, Series 2015
|
|
|
|
|
|
|
|
|
|
|
103
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 22 - CONDUIT DEBT OBLIGATIONS (continued)
|
|
|
Current Outstanding at
June 30, 2019
|
|
City of Bakersfield - Cottonwood Village Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Cottonwood Court Housing Bond,
|
|
|
|
|
|
City of Bakersfield - St. John Manor Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Coventry Apartments Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Catholic Healthcare West 501(c)(3)
|
|
|
Nonprofit Bond, Series A thru L
|
|
|
City of Bakersfield - Descanso Place Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Bakersfield Family Apartments Housing
|
|
|
|
|
|
City of Bakersfield - Camellia Place Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Eucalyptus Village I Housing Bond,
|
|
|
|
|
|
City of Bakersfield - Eucalyptus Village II Housing Bond,
|
|
|
|
|
|
City of Bakersfield - American Baptist Homes of The West
|
|
|
501(c)(3) Nonprofit Bond, Series 2015
|
|
|
|
|
|
|
|
|
|
|
104
|
CITY OF BAKER - ACFR2019 - Xbrl
Notes to the Financial Statements
NOTE 23 - PRIOR PERIOD ADJUSTMENTS
|
During the fiscal year ended June 30, 2019, the City made the following prior period adjustments to restate the net position for governmental activities and business-type activities and related fund balance for: 1) Net Position for Governmental and Business-Type Activities were adjusted to correct interest revenues allocated erroneously in the prior year and also was adjusted after review of capital assets by City departments, 2) Correction of Fund Balance in the General Fund, Park Improvement Fund, and the Transportation Development Fund for the interest revenue adjustment that was made, 3) to adjust prior year expenses in the Transportation Development Fund for expenses that were found to no longer be eligible for federal funding, and 4) Correction of fund balance in the Equipment Fund to adjust assets that were not properly recorded. See corresponding changes in statements on p. 22, p.30, p.31, p.36, p.37, and p. 134.
|
|
|
|
|
July 1, 2018
as previously
reported
|
|
July 1, 2018,
as
restated
|
|
|
|
|
|
|
Net Position - Governmental Activities
|
|
|
|
|
Net Position - Business-Type Activities
|
|
|
|
|
Wastewater Treatment Fund
|
|
|
|
|
|
|
|
|
|
River & Agricultural Water Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 1, 2018
as previously
reported
|
|
July 1, 2018,
as
restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation Development Fund
|
|
|
|
|
|
|
|
|
105
|
|
Required Supplementary Information
Through the budget process, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Budget assures the efficient and effective use of the City's economic resources, as well as establishing that the highest priority objectives are accomplished. Budgets are adopted for all governmental fund types and are prepared on a basis consistent with accounting principles generally accepted in the United States of America.
The Annual Budget serves from July 1 to June 30, and is a vehicle that accurately and openly communicates these priorities to the community, businesses, vendors, employees and other public agencies. Additionally, it establishes the foundation of effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City's performance.
The City's budget is prepared and based on four expenditure categories: personnel, supplies and services, minor capital outlay and capital improvement programs. The first three listed are considered operational in nature and known as recurring costs. Capital improvement projects are asset acquisitions, facilities systems, and infrastructure improvements typically over $50,000, and/or those items "outside" of the normal operational budget. These are known as one-time costs.
The City collects and records revenue and expenditures within the following categories:
−Governmental Activities
−Business-Type Activities
The Governmental Funds include the General Fund, Special Revenue, Debt Service and Capital Projects funds. All funding sources are kept separate for both reporting and use of the money. The General Fund is where most City services are funded that are not required to be segregated.
The budget process begins as a team effort in January of each year, starting with an annual strategic planning meeting. Then the individual departments use projected revenue assumptions to prioritize and recommend the next fiscal year's objectives. The City Manager's Office and the Finance Department review all budget proposals and revenues assumptions, as well as all current financial obligations before preparing the document that is proposed to the City Council. The City Council reviews the Proposed Budget through a series of workshops, and the final adoption of the budget is normally scheduled for the second City Council meeting each June.
At the beginning of each fiscal year, certain appropriations are "carried forward" from the prior budget year. These items generally relate to either open encumbrances that exist at June 30, or capital projects that were budgeted in the prior fiscal year that did not progress to the encumbrance stage as of June 30. The City Manager's Office approves all carryovers that are not encumbered as of June 30 of each year.
The amounts carried forward from fiscal year ended June 30, 2018 to fiscal year ended June 30, 2019 totaled $314,050,835.
106
|
|
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
|
These following schedules represent budgetary comparisons for the General Fund and all major special revenue funds within the City.
Budgetary Comparison Schedule, General Fund
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fines, forfeitures and assessments
|
|
|
|
|
|
|
|
|
|
|
|
Contributions and donations
|
|
|
|
|
|
|
|
|
|
|
|
Transfers from other funds
|
|
|
|
|
|
Amount available for appropriation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total charges to appropriations
|
|
|
|
|
|
Amount of resources over (under)
charges to appropriations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
107
|
|
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
|
Budgetary Comparison Schedule, Transient Occupancy Taxes Fund
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
Fund Balance, July 1 - as restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions and donations
|
|
|
|
|
|
Amount available for appropriation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total charges to appropriations
|
|
|
|
|
|
Amount of resources over (under)
charges to appropriations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Budgetary Comparison Schedule, Community Development Block Grant Fund
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount available for appropriation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total charges to appropriations
|
|
|
|
|
|
Amount of resources over (under)
charges to appropriations
|
|
|
|
|
|
|
|
|
|
|
108
|
|
Required Supplementary Information (continued)
BUDGETARY INFORMATION (continued)
|
Budgetary Comparison Schedule, Gas Tax & Road Fund
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fines, forfeitures and assessments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount available for appropriation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total charges to appropriations
|
|
|
|
|
|
Amount of resources over (under)
charges to appropriations
|
|
|
|
|
|
|
|
|
|
|
109
|
|
Required Supplementary Information (continued)
The Schedules of Changes in Net Pension Liability and Related Ratios as of the Measurement Period ending June 30, 2018 are below:
MISCELLANEOUS PLAN [a][e]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on Total Pension Liability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Difference Between Expected and Actual Experience
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Total Pension Liability
|
|
|
|
|
|
Total Pension Liability - Beginning
|
|
|
|
|
|
Total Pension Liability - Ending [1]
|
|
|
|
|
|
Plan Fiduciary Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Miscellaneous Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan to Plan Resource Movement
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Misc Income/(Expense)
|
|
|
|
|
|
Net Change in Plan Fiduciary Net Position
|
|
|
|
|
|
Plan Fiduciary Net Position - Beginning
|
|
|
|
|
|
Plan Fiduciary Net Position - Ending [2]
|
|
|
|
|
|
Plan Net Pension Liability / (Asset) - [1]-[2]
|
|
|
|
|
|
Plan Fiduciary Net Position as a Percentage
of Covered Employee Payroll
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan Net Pension Liability / (Asset) as a Percentage
of Covered Employee Payroll
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedules of Plan Contributions
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarially Determined Contribution [c]
|
|
|
|
|
|
Contributions in Relation to the Actuarially
Determined Contribution [c]
|
|
|
|
|
|
Contribution Deficiency (Excess)
|
|
|
|
|
|
Covered Employee Payroll [d]
|
|
|
|
|
|
Contributions as a Percentage of Covered Employee Payroll
|
|
|
|
|
|
[a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution.
[d] Payroll from prior year was assumed to increase by the 3.00 percent payroll growth assumption.
[e] Additional years' information will be displayed as it becomes available.
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
110
|
|
Required Supplementary Information (continued)
DEFINED PENSION PLAN (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on Total Pension Liability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Difference Between Expected and Actual Experience
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Total Pension Liability
|
|
|
|
|
|
Total Pension Liability - Beginning
|
|
|
|
|
|
Total Pension Liability - Ending [1]
|
|
|
|
|
|
Plan Fiduciary Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Miscellaneous Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan to Plan Resource Movement
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Misc Income/(Expense)
|
|
|
|
|
|
Net Change in Plan Fiduciary Net Position
|
|
|
|
|
|
Plan Fiduciary Net Position - Beginning
|
|
|
|
|
|
Plan Fiduciary Net Position - Ending [2]
|
|
|
|
|
|
Plan Net Pension Liability / (Asset) - [1]-[2]
|
|
|
|
|
|
Plan Fiduciary Net Position as a Percentage
of Covered Employee Payroll
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan Net Pension Liability / (Asset) as a Percentage
of Covered Employee Payroll
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedules of Plan Contributions
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarially Determined Contribution [c]
|
|
|
|
|
|
Contributions in Relation to the Actuarially
Determined Contribution [c]
|
|
|
|
|
|
Contribution Deficiency (Excess)
|
|
|
|
|
|
Covered Employee Payroll [d]
|
|
|
|
|
|
Contributions as a Percentage of Covered Employee Payroll
|
|
|
|
|
|
[a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution.
[d] Payroll from prior year was assumed to increase by the 3.00 percent payroll growth assumption.
[e] Additional years' information will be displayed as it becomes available.
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
111
|
|
Required Supplementary Information (continued)
DEFINED PENSION PLAN (continued)
|
SAFETY POLICE PLAN [a][e]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on Total Pension Liability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Difference Between Expected and Actual Experience
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Change in Total Pension Liability
|
|
|
|
|
|
Total Pension Liability - Beginning
|
|
|
|
|
|
Total Pension Liability - Ending [1]
|
|
|
|
|
|
Plan Fiduciary Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Miscellaneous Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan to Plan Resource Movement
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Misc Income/(Expense)
|
|
|
|
|
|
Net Change in Plan Fiduciary Net Position
|
|
|
|
|
|
Plan Fiduciary Net Position - Beginning
|
|
|
|
|
|
Plan Fiduciary Net Position - Ending [2]
|
|
|
|
|
|
Plan Net Pension Liability / (Asset) - [1]-[2]
|
|
|
|
|
|
Plan Fiduciary Net Position as a Percentage
of Covered Employee Payroll
|
|
|
|
|
|
|
|
|
|
|
|
|
Plan Net Pension Liability / (Asset) as a Percentage
of Covered Employee Payroll
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedules of Plan Contributions
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarially Determined Contribution [c]
|
|
|
|
|
|
Contributions in Relation to the Actuarially
Determined Contribution [c]
|
|
|
|
|
|
Contribution Deficiency (Excess)
|
|
|
|
|
|
Covered Employee Payroll [d]
|
|
|
|
|
|
Contributions as a Percentage of Covered Employee Payroll
|
|
|
|
|
|
[a] Historical information is required only for measurement periods for which GASB Statement No. 68 is applicable. These schedules are presented to illustrate the requirement to show that information.
[b] Includes refunds of employee contributions.
[c] Employers are assumed to make contributions equal to the actuarially determined contribution. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contribution.
[d] Payroll from prior year was assumed to increase by the 3.00 percent payroll growth assumption.
[e] Additional years' information will be displayed as it becomes available.
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes of Assumptions: In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
112
|
|
Required Supplementary Information (continued)
OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN - SCHEDULE OF CHANGES IN THE CITY'S NET OPEB LIABILITY AND RELATED RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Difference between expected and actual experience
|
|
|
|
Changes of assumptions and methods
|
|
|
|
|
|
|
|
Net Change in Total OPEB Liability
|
|
|
|
Total OPEB Liability - beginning
|
|
|
|
Total OPEB Liability - ending (a)
|
|
|
|
|
|
|
|
Plan Fiduciary Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in Plan Fiduciary Net Position
|
|
|
|
Plan Fiduciary Net Position - beginning
|
|
|
|
Plan Fiduciary Net Position - ending (b)
|
|
|
|
Plan's Net OPEB Liability - ending (a)-(b)
|
|
|
|
|
|
|
|
Plan Fiduciary Net Position as a percentage of the Total OPEB Liability
|
|
|
|
|
|
|
|
Plan Net OPEB Liability as percentage of covered employee payroll
|
|
|
|
|
|
|
[a] additional years' information sill be dsiplayed as it becomes available
113
|
|
Required Supplementary Information (continued)
SCHEDULE OF OPEB CONTRIBUTIONS
|
Last Ten Fiscal Years
|
|
|
Contributions in
Relation
|
|
|
Contributions
As a Percentage
of Covered
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114
|
|
115
|
|
116
|
|
Supplementary Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Revenues by Function - Budget and Actual
|
|
|
|
|
Schedule of Expenditures by Division - Budget and Actual
|
|
|
|
|
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Public Safety and Vital Services Funds
|
|
|
|
|
Combining Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
|
|
|
|
|
Schedule of Revenues, Expenditures, and Changes in
Fund Balance - Budget and Actual
|
|
|
|
|
Combining Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual
|
|
|
|
|
Combining Statement of Net Position
|
|
|
|
|
Combining Statement of Activities and Changes in Net Position
|
|
|
|
|
Combining Statement of Cash Flows
|
|
|
|
|
Statement of Changes in Assets and Liabilities - Fiduciary Funds (Agency)
|
|
|
|
|
Combining Statements of Fiduciary Net Position
|
|
|
|
|
Combining Statements of Changes in Fiduciary Net Position
|
|
|
|
|
Non-Major Governmental Funds
|
|
|
|
|
|
|
|
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances
|
|
Long-term Debt Recorded in Private Purpose Trust Fund
|
|
117
|
|
This fund was established to account for the revenues and expenditures to carry out basic governmental activities of the City of Bakersfield such as general government, public safety, public works and community services.
Revenues are recorded by source, i.e., taxes, licenses and permits, etc. Expenditures are made primarily on current day-to-day operations and are recorded by major functional classifications and by operating departments.
This fund accounts for all financial transactions not accounted for in another fund.
118
|
|
119
|
|
CITY OF BAKERSFIELD
Balance Sheet
General Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from other governmental agencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities, Deferred Inflows of Resources and Fund Balance:
|
|
|
|
|
|
|
|
Advances from grantors and third parties
|
|
|
|
|
|
|
|
|
|
|
Deferred Inflows of Resources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriations for new year budget
|
|
|
|
|
|
|
|
Non-contractual encumbrances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities, deferred inflows of resources and fund balance
|
|
120
|
|
Schedule of Revenues by Function - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other licenses and permits
|
|
|
|
|
|
|
|
|
Total licenses and permits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total charges for services
|
|
|
|
|
|
|
|
|
Fines, forfeitures, and assessments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in the fair value of investments
|
|
|
|
Contributions and donations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
121
|
|
CITY OF BAKERSFIELD
Schedule of Expenditures by Division - General Fund
Budget and Actual
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total recreation and parks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total development services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total General Fund Expenditures
|
|
|
|
122
|
|
CITY OF BAKERSFIELD
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Public Safety and Vital Services Funds (sub-fund of General Fund)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess (deficiency) of revenues
over (under) expenditures
|
|
|
|
Other financing sources (uses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other financing sources (uses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
123
|
|
CITY OF BAKERSFIELD
These funds account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes.
Transient Occupancy Taxes Fund is used to account for Transient Occupancy Tax Revenues (Hotel Tax) and expenditures funded by this revenue source. The Rabobank Arena and Convention Center and Bakersfield Ice Sports Center operating revenues and expenditures are recorded in this fund. This fund is also used to account for duties performed by Visit Bakersfield.
Community Development Block Grant Fund is used to account for resources provided by the Federal Housing and Community Development Act of 1974 for the elimination of slums and blight, housing conservation and improvements of community services.
Neighborhood Stabilization Fund is used to account for resources provided by the Federal Housing and Economic Recovery Act of 2008 to address congressionally identified needs of abandoned and foreclosed homes in the City. These funds are used for down payment assistance, acquisition of Real Estate Owned (REO) lender assets properties that have been foreclosed upon for redevelopment, rehabilitation of acquired residential structures, and demolition of blighted structures.
Gas Tax & Road Fund is used to account for the City's share, based upon population, of state gasoline taxes. State law requires these gasoline taxes be used to maintain streets or for major street construction. This fund also accounts for the resources provided by the Moving Ahead for Progress in the 21st Century Act (MAP21). Congestion Mitigation and Air Quality (CMAQ) funds are used in the metropolitan Bakersfield area to fund transportation projects in the Transportation Improvement Program. The Regional Surface Transportation Program (STP) is funded by Federal aid functionally classified higher than local road or rural minor collector routes. The Transportation Enhancement Activities (TEA) Program projects have a direct relationship to the intermodal transportation system by function, proximity, or impact. Lastly, the Highway Bridge Replacement and Rehabilitation Program (HBRR) allows each local agency two bridge replacement projects and two miscellaneous projects per year.
State (TDA) Transportation Fund is used to account for three Transportation Development Act (TDA) funding sources. Article 3 funds must be used to construct facilities that specifically benefit pedestrians and/or bicyclists. Article 4 funds are Local Transportation and State Transit Assistance Funds. These resources are used to cover the City's maintenance and operation costs of the Bakersfield Amtrak Railway Station. The City is the owner of the station and leases the facility to Amtrak, who operates the transit service. Article 4 funds may also be used for various improvements at bus stops throughout the City. Article 8 funds represent the City's allocation of the 1/4% of sales tax authorized by Senate Bill (SB) 325. State law requires these sales tax dollars be used for street purposes. These funds are received and expended by the City as lead agency servicing the local road network. All three revenue resources are accounted for individually as required by the State of California but are combined for financial reporting purposes. The City currently receives only Article 3 and Article 4 money.
State Safety Fund is used to account for specific revenue received for certain Police and Fire related programs. The City Police Department has a share of traffic fine resources which are transferred to the General Fund to assist in funding the cost of traffic safety and control devices and State of California monies from the Supplemental Law Enforcement Services grant. The Fire Department operates a local Certified Unified Program Agency (CUPA) which is required for state and federal environmental regulation. These revenue sources are accounted for individually as required by the State, but combined for financial reporting purposes.
Redevelopment Successor Agency Housing Fund was created on February 1, 2012, pursuant to the provisions of the Redevelopment Restructuring Act. The City has chosen to assume the housing functions and take over the housing assets of the former Redevelopment Agency.
124
|
|
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - All Special Revenue Funds
|
|
Transient Occupancy Taxes
|
|
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fines, forfeitures, and assessments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions and donations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Curbs, gutters and sidewalks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess (deficiency) of revenues over (under) expenditures
|
|
|
|
Other financing sources (uses):
|
|
|
|
|
|
|
|
|
Total other financing sources (uses)
|
|
|
|
Net change in fund balances
|
|
|
|
Fund balances - beginning
|
|
|
|
|
|
|
|
|
125
|
|
Community Development Block Grant
|
Neighborhood Stabilization
|
|
|
|
Variance with
Final Budget
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
126
|
|
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (continued)
Budget and Actual - All Special Revenue Funds
|
|
|
|
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fines, forfeitures, and assessments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions and donations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Curbs, gutters and sidewalks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess (deficiency) of revenues over (under) expenditures
|
|
|
|
Other financing sources (uses):
|
|
|
|
|
|
|
|
|
Total other financing sources (uses)
|
|
|
|
Net change in fund balances
|
|
|
|
Fund balances - beginning
|
|
|
|
|
|
|
|
|
127
|
|
State (TDA) Transportation
|
|
|
|
|
Variance with
Final Budget
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
128
|
|
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances (continued)
Budget and Actual - All Special Revenue Funds
|
|
Redevelopment Successor Agency - Housing
|
|
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fines, forfeitures, and assessments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions and donations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Curbs, gutters and sidewalks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess (deficiency) of revenues over (under) expenditures
|
|
|
|
Other financing sources (uses):
|
|
|
|
|
|
|
|
|
Total other financing sources (uses)
|
|
|
|
Net change in fund balances
|
|
|
|
Fund balances - beginning
|
|
|
|
|
|
|
|
|
129
|
|
|
|
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
130
|
|
CITY OF BAKERSFIELD
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - Debt Service Fund
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fiscal charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deficiency of revenues under expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other financing sources
|
|
|
|
Net change in fund balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
131
|
|
These funds account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by Proprietary Funds and Trust Funds.
Capital Outlay Fund is used to account for the cost of capital projects financed by general revenues and grant/loan proceeds for recreational facilities.
Park Improvement Fund is used to account for funds collected for residential park development (Ordinance No. 3646). Fees are collected based on the development's share of the cost to develop, improve, construct or enhance a neighborhood park (Ordinance No. 3327).
Transportation Development Fund is used to account for funds collected from fees paid to mitigate the traffic impacts to the regional circulation system caused by a development project. The fees are paid when a building permit for the development project is obtained, and are based upon the amount of traffic the development will generate. With these fees, the City constructs projects that have been identified as necessary to maintain the level of services required by the 2010 General Plan for the regional transportation network. This is a joint City and Kern County program which affects the entire metropolitan area. Fees are collected with the building permit and are based on the relative impact each land use has on the transportation network. The fee schedule was adopted with Ordinance No. 3513 and will be periodically evaluated by the City Council and revised to reflect updated costs and growth projections. Revenue from fees collected may also be used to service bonded debt incurred in Capital Improvement Construction.
132
|
|
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual - All Capital Projects Funds
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
Variance with
Final Budget
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fines, forfeitures, and assessments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess (deficiency) of revenues
over (under) expenditures
|
|
|
|
|
|
|
Other financing sources (uses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other financing sources (uses)
|
|
|
|
|
|
|
Net change in fund balances
|
|
|
|
|
|
|
Fund balances - beginning
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
These funds are used to account for the financing of goods or services provided by one department or agency to other
133
|
|
Transportation Development
|
|
|
|
|
Variance with
Final Budget
|
|
|
Variance with
Final Budget
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
134
|
|
departments or agencies of the City on a cost-reimbursement basis.
Self-Insurance Fund is used to account for the cost of operating a self-insurance program as follows:
With regard to workers' compensation, the City is self-insured for the first $500,000 of each injury or occurrence and is a member of California Public Entity Insurance Authority (CPEIA) which provides $5,000,000 of excess coverage to protect against catastrophic type losses. Funding for this program is provided by interdepartmental charges varying by employee classification and their industrial injury loss experience.
With regard to general and auto liability, the City is self-insured for the first $1,000,000 of each accident or occurrence and is a member of the Authority for California Cities Excess Liability (ACCEL) which provides excess commercial insurance in the amount of $10,000,000. Funding for this program is provided by interdepartmental charges.
Equipment Management Fund is used to account for the cost of operating and maintaining a maintenance facility for vehicular, telecommunications and computer equipment used by other City departments. Such costs are billed to other departments via established rates which are based upon actual cost. Actual costs include maintenance, repair, and replacement cost of shop and automotive equipment.
135
|
|
CITY OF BAKERSFIELD
Combining Statement of Net Position
All Internal Service Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments and inventories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciable buildings, property, equipment and infrastructure, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Outflows of Resources:
|
|
|
|
|
|
|
|
|
Deferred other post-employment benefits
|
|
|
|
Total deferred outflows of resources
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
|
|
|
|
Workers' compensation claims
|
|
|
|
Compensated absences payable
|
|
|
|
Total current liabilities
|
|
|
|
|
|
|
|
|
Workers' compensation claims
|
|
|
|
Compensated absences payable
|
|
|
|
|
|
|
|
|
Net other post-employment benefits liability
|
|
|
|
Total noncurrent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Inflows of Resources:
|
|
|
|
|
|
|
|
|
Deferred other post-employment benefits
|
|
|
|
Total deferred inflows of resources
|
|
|
|
|
|
|
|
|
Net investment in capital assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
136
|
|
CITY OF BAKERSFIELD
Combining Statement of Activities and Changes in Net Position
All Internal Service Funds
|
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative
|
|
|
|
Workers' compensation payments
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonoperating revenues (expenses):
|
|
|
|
|
|
|
|
|
Gain/(loss) on sale of capital assets
|
|
|
|
|
|
|
|
|
Income (loss) before transfers
and capital contributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Net Position -
Beginning of Year - as Restated
|
|
|
|
Total Net Position - End of Year
|
|
|
|
137
|
|
CITY OF BAKERSFIELD
Combining Statement of Cash Flows
All Internal Service Funds
|
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior year reimbursements and cost recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided (used) by operating activities
|
|
|
|
Cash flows from noncapital financing activities:
|
|
|
|
Cash transferred from other funds
|
|
|
|
Cash transferred to other funds
|
|
|
|
|
|
|
|
|
Net cash provided (used) by noncapital financing activities
|
|
|
|
Cash flows from capital and related financing activities:
|
|
|
|
Purchase of capital assets
|
|
|
|
Proceeds from sale of capital assets
|
|
|
|
|
|
|
|
|
Net cash (used) by capital and related financing activities
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Net increase (decrease) in the fair value of investments
|
|
|
|
|
|
|
|
|
Net cash provided (used) by investing activities
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and investments
|
|
|
|
|
|
|
|
|
Cash and investments - Beginning of year
|
|
|
|
|
|
|
|
|
Cash and investments - End of year
|
|
|
|
Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile operating income (loss) to net
|
|
|
|
cash provided (used) by operating activities:
|
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable
|
|
|
|
(Increase) decrease in inventories
|
|
|
|
Decrease in prepaid items
|
|
|
|
Increase (decrease) in accounts payable
|
|
|
|
Increase (decrease) in workers' compensation claims
|
|
|
|
Increase (decrease) in compensated absences
|
|
|
|
Increase (decrease) in net pension liability
|
|
|
|
Increase (decrease) in deferred outflows/inflows of resources for pensions
|
|
|
|
Increase (decrease) in other post-employment benefits liability
|
|
|
|
Increase (decrease) in deferred outflows/inflows of resources for OPEB
|
|
|
|
Net cash provided (used) by operating activities
|
|
|
|
Noncash investing, capital, and financing activities:
|
|
|
|
Contribution of equipment from other departments
|
|
|
|
138
|
|
CITY OF BAKERSFIELD
Statement of Changes in Assets and Liabilities
Fiduciary Funds (Agency)
|
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from other governmental agencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Improvement Districts Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from other governmental agencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from other governmental agencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
139
|
|
CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Private Purpose Trust Funds
|
|
|
Redevelopment Successor Agency - Trust
|
|
Total
Private Purpose
Trust Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advances from grantors and third parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individuals, organizations, and other governments
|
|
|
|
|
|
|
|
|
140
|
|
CITY OF BAKERSFIELD
Combining Statement of Fiduciary Net Position
Pension and Other Employee Benefit Trust Funds
|
|
|
|
Fire Relief and
Pension Trust
|
Total
Pension and Other
Employee Benefit
Trust Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held in trust for -
Pension/other post-employment benefits
|
|
|
|
|
|
|
|
|
141
|
|
CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position
Private Purpose Trust Funds
|
For the Fiscal Year Ended June 30, 2019
|
|
Redevelopment Successor Agency - Trust
|
|
Total
Private Purpose
Trust Funds
|
|
|
|
|
|
|
|
|
|
|
Successor agency property tax deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution from Successor Housing Agency
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of uninhabited land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net position - beginning of year
|
|
|
|
|
|
|
|
|
Net position - end of year
|
|
|
|
142
|
|
CITY OF BAKERSFIELD
Combining Statement of Changes in Fiduciary Net Position
Pension and Other Employee Benefit Trust Funds
|
For the Fiscal Year Ended June 30, 2019
|
|
|
Fire Relief and
Pension Trust
|
Total
Pension and Other
Employee Benefit
Trust Funds
|
|
|
|
|
|
Contributions to pooled investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
143
|
|
Combining Balance Sheet
Non-Major Governmental Funds
|
|
|
|
|
Neighborhood Stabilization
|
|
State (TDA) Transportation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Due from other governmental agencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities, Deferred Inflows of Resources, and Fund Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advances from grantors and third parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Inflows of Resources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities, deferred inflows
of resources, and fund balances
|
|
|
|
144
|
|
|
|
|
|
|
|
Redevelopment Successor Agency - Housing
|
|
Total
Non-Major
Governmental
Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
145
|
|
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the Fiscal Year Ended June 30, 2019
|
|
|
|
|
Neighborhood
Stabilization
|
|
State (TDA)
Transportation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fines, forfeitures and assessments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fiscal charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess (deficiency) of revenues
over (under) expenditures
|
|
|
|
Other financing sources (uses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other financing sources (uses)
|
|
|
|
|
|
|
|
|
Net change in fund balances
|
|
|
|
|
|
|
|
|
Fund balances - beginning - as restated
|
|
|
|
|
|
|
|
|
146
|
|
|
|
|
|
|
|
Redevelopment Successor Agency
- Housing
|
|
Total
Non-Major
Governmental
Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
147
|
|
Long-term Debt Recorded in Private Purpose Trust Fund
|
|
|
REDEVELOPMENT SUCCESSOR AGENCY
|
|
|
|
|
$2,090,000 Tax Allocation Bond to be used for construction of public
improvements for new developments on 18th and 19th Streets, and improvements to
the Mill Creek Linear Park. The funds were dispersed in July 2009. The interest rate
is 7.5%, with payments commencing August 2010 through August 2029.
|
|
|
|
|
$1,240,000 Tax Allocation Bond to be used for infrastructure improvements for
the Mill Creek Linear Park Canal at South Millcreek. The funds were dispersed in
July 2009. The interest rate is 7.25%, with payments commencing August 2010
through August 2029.
|
|
|
|
|
|
|
|
|
|
|
$1,000,000 HUD Section 108 Loan, 2003 (Agency Agreement #RA 03-016) - due
in annual principal installments of $27,000 to $82,000 commencing August 1,
2004; interest ranging from 1.61% to 4.76%.
|
|
|
|
|
$1,600,000 HUD Section 108 Loan, 2005 (Agency Agreement #RA 06-020) for
construction of Fire Station No. 5 - due in annual principal installments of
$58,000 to $137,000 commencing August 1, 2009; interest ranging from 4.96% to 5.77%.
|
|
|
|
|
$3,750,000 HUD Section 108 Loan, 2007 (Agency Agreement # RA 06-022)
Loan proceeds are dedicated to the Mill Creek South Mixed-Use project and will
go toward the acquisition and clean-up of a six acre parcel. Due in annual principal
installments of $136,000 to $321,000 commencing August 1, 2008; interest
ranging from 2.62% to 5.42%.
|
|
|
|
|
$10,000,000 Bakersfield Redevelopment Agency Loan with I-bank to help finance
the Mill Creek Linear Park and Canal Refurbishment Project. Only $6,933,445 of the loan
was dispersed through fiscal year 2009. Annual principal installments of $217,383 to $512,446
commencing on August 1, 2009 through August 2037; interest rate at 3.11%.
|
|
|
|
|
$2,000,000 Loan with the City of Bakersfield Equipment Fund to provide
construction assistance required for the 19th Street Senior Plaza Development.
Funds were disbursed June 2009. The loan has a 5% interest rate and a seven year
payment period commencing July 2013.
|
|
|
|
|
148
|
|
Long-term Debt Recorded in Private Purpose Trust Fund
|
|
|
$950,000 Loan with the City of Bakersfield Equipment Fund to pre-purchase an
easement to facilitate the development of the Chelsea Housing project and the
Southeast Mill Creek commercial area. The loan has a 3% interest rate and a five
year payment period commencing July 2013.
|
|
|
|
|
$1,500,000 Loan with the City of Bakersfield Self-Insurance Fund to provide
construction assistance required for the Courtyard Family Apartments located west
of S Street, between 13th and 14th Streets at S. Mill Creek. Funds were disbursed in
September 2009. The loan has a 5% interest rate and seven year payment period commencing July 2013.
|
|
|
|
|
$17,000,000 Reimbursement to the City for (a) refunding of 1993 Tax Allocation
Bonds, (b) 1987 COP Convention Improvement Project, and (c) the
construction, equipping and furnishing of a multipurpose area (the Arena Project)
per Agreement #97-2. Agreement is for two payments of $850,000 each year,
from March 1997 to June 2022.
|
|
Total Loans/Contracts Payable
|
|
|
|
|
|
|
|
|
|
|
Annual requirements to amortize the principal and interest on long-term debt of Redevelopment Successor Agency at June 30, 2019 is as follows:
|
|
Redevelopment Successor Agency (Private Purpose Trust Fund)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
149
|
|
150
|
|
City of Bakersfield
Statistical Section
For the year ended June 30, 2019
The statistical section of the City of Bakersfield's (City) comprehensive annual financial report presents detailed information as a context for understanding what the information presented in the financial statements, note disclosures and required supplementary information says about the City's overall financial health. Where less than 10 years of data is presented, the information was not available.
|
|
|
|
|
|
|
|
|
|
|
|
|
These schedules contain trend information to help the reader understand
|
|
how the City's financial performance measures have changed over time
|
|
|
|
|
|
|
|
These schedules contain information to help the reader assess the factors
|
|
affecting the City's ability to generate its property and sales tax revenues.
|
|
|
|
|
|
|
|
These schedules present information to help the reader assess the affordability
|
|
of the City's current level of outstanding debt and the City's ability to issue
|
|
additional debt in the future.
|
|
|
|
|
Demographic and Economic Information
|
|
These schedules offer demographic and economic indicators to help the
|
|
reader understand the environment within which the City's financial
|
|
|
|
|
|
|
|
|
|
|
These schedules contain service and infrastructure data to help the reader
|
|
understand how the information in the City's financial report relates to the
|
|
services the City provides and the activities it performs.
|
|
|
|
|
151
|
|
Net Position by Component (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment in capital assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total governmental activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business-type Activities:
|
|
|
|
|
Net investment in capital assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business-type activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment in capital assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(1) This schedule reports using the accrual basis of accounting.
(2) There was a prior period adjustment in Governmental and/or Business-type Activities for the fiscal year. Numbers
have been changed to reflect the restatement.
(3) There was a prior period adjustment in Governmental and/or Business-type Activities for the fiscal year. Numbers
have been changed to reflect the restatement.
(4) The current year increase in Governmental Activities net position is primarily due to the Public Safety and Vital Services (PSVS)
district tax which is new source of revenue that approved by residents in November 2018.
152
|
|
153
|
|
Change in Net Position (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Economic/Community development (2)
|
|
|
|
|
Interest on long-term debt
|
|
|
|
|
|
|
|
|
|
|
Total governmental activities expenses
|
|
|
|
|
|
|
|
|
|
|
Business-type activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
River & agricultural water
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business-type activities expenses
|
|
|
|
|
|
|
|
|
|
|
Total primary government expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Economic/Community development (2)
|
|
|
|
|
Operating grants and contributions
|
|
|
|
|
Capital grants and contributions
|
|
|
|
|
Total governmental activities
|
|
|
|
|
|
|
|
|
|
|
Notes:
(1) This schedule reports using the accrual basis of accounting.
(2) Economic/Community Development became a part of Development Services.
154
|
|
CITY OF BAKERSFIELD
Change in Net Position (1) continued
Last Ten Fiscal Years
155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business-type activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
River & agricultural water
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating grants and contributions
|
|
|
|
|
Capital grants and contributions
|
|
|
|
|
Total business-type activities
program revenues
|
|
|
|
|
Total primary government
program revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total primary government
Net (Expenses) Revenues
|
|
|
|
|
General Revenues and Other Changes in Net Position
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intergovernmental, unrestricted
|
|
|
|
|
Unrestricted grants and contributions
|
|
|
|
|
Investment earnings (loss)
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sale of property
|
|
|
|
|
|
|
|
|
|
|
Total Governmental Activities
|
|
|
|
|
|
|
|
|
|
|
Business-type activities:
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sale of property
|
|
|
|
|
|
|
|
|
|
|
Total business-type activities
|
|
|
|
|
|
|
|
|
|
|
Extraordinary gain (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
156
|
|
157
|
|
Fund Balances of Governmental Funds
Last Ten Fiscal Years (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All Other Governmental Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal all other governmental funds
|
|
|
|
|
Total governmental fund balance
|
|
|
|
|
Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements.
Source: City Finance Department
158
|
|
159
|
|
Changes in Fund Balances of Governmental Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fines, forfeitures &
assessments
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions and donations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Economic/Community development(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fiscal charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess (deficiency) of revenues over (under) expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
Other financing sources (uses):
|
|
|
|
|
|
Notes/certificate proceeds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve transfer to agency funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in fund balances
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt service as a percentage of
non-capital expenditures
|
|
|
|
|
|
Notes:
(1) Economic/Community Development became a part of Development Services.
Source: City Finance Department
160
|
|
161
|
|
162
|
|
163
|
|
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years (1)
|
|
|
|
|
|
Transient
Occupancy
Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(1) Includes all governmental funds as shown in the Fund Financial Statements.
(2) Includes Vehicle License Fee in Lieu revenue.
(3) Includes additional taxes and Utility Surcharge revenues designated by ordinance for road purposes.
Source: City Finance Department
164
|
|
CITY OF BAKERSFIELD
Principal Property Taxpayers
|
Current Year and Nine Years Ago
|
|
|
|
|
|
|
|
Percentage of
Total Taxable
Assessed
Value
|
|
|
Percentage of
Total Taxable
Assessed
Value
|
|
|
|
|
|
|
|
|
Nestle Dreyers Ice Cream Company
(formerly Nestle Holdings, Inc in 2010)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valley Plaza Mall LP (formerly Bakersfield Mall LLC in 2010)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California Water Service Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DS Properties 18 (formerly Donahue Schriber Realty Group LLP in 2010)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BLC Glenwood Gardens SNF LP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bright House Networks LLC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kaiser Foundation Health Plan Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State Farm Insurance Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Walmart Stores Inc/Sam's Club
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total taxable assessed value of
|
|
|
|
|
|
|
ten (10) largest taxpayers
|
|
|
|
|
|
|
Total taxable assessed value of other taxpayers
|
|
|
|
|
|
|
Total taxable assessed value of all taxpayers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
Related parties grouped together on the original source document (County's list of assessed valuations) are included in the total assessed valuation amount for each taxpayer cited. Unitary and operating nonunitary are excluded as valuation by parcel is no longer available. Secured values only reported.
Source: HDL Coren & Cone, Kern County Assessor 2018-19 Combined Tax Rolls
165
|
|
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Amounts expressed in thousands
(1) In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Source: HDL Coren & Cone, Kern County Assessor 2018-19 Combined Tax Rolls.
166
|
|
167
|
|
Property Tax Rates
Direct and Overlapping Governments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic County-Wide Levy (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kern Community College District
|
|
|
|
|
|
|
|
|
|
|
Kern High School District
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Panama Buena Vista School
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Direct & Overlapping Tax Rates (2)
|
|
|
|
|
|
|
|
|
|
|
City Share of 1% Levy (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In 1978 the voters of the State of California passed Proposition 13 which set the property tax rate at a 1.00% fixed amount.
This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed
amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved
bonds.
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all
overlapping rates apply to all City property owners.
(3) City's share of 1.00% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Educational Revenue Augmentation Fund (ERAF) general fund tax shifts are not included in tax ratio figures. The effective City rate after ERAF is 9.9%.
(4) Total Direct Rate is the weighted average of all individual direct rates applied by the City of Bakersfield.
Source: HDL Coren & Cone (Kern County Auditor-Controller's Office)
168
|
|
169
|
|
Property Tax Levies and Collections
Last Ten Fiscal Years (1)
|
|
|
Collected within the
Fiscal Year of the Levy
|
|
Total Collections to Date
|
Fiscal Year
Ended
June 30
|
Tax Levied
for the
Fiscal Year
|
|
|
Collections
in Subsequent
Years (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(1) Excludes Redevelopment property tax increment.
(2) Delinquent tax collections do not include interest or penalties.
(3) Total collections to date may exceed 100% of annual levy. Delinquent tax collections are
recorded in the current levy year as the County of Kern does not give detail as to the levy
year for delinquent tax collections. This was confirmed with the County of Kern in 2014.
Source: City Finance Department
170
|
|
Direct and Overlapping Sales Tax Rates
Note: The City's sales tax rate may be changed with voter approval.
Source: California State Board of Equalization
171
|
|
Taxable Sales By Market Groups
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accommodation and Food Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Services (except Public Administration)
|
|
|
|
|
|
Real Estate and Rental and Leasing
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional, Scientific, and Technical Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Health Care and Social Assistance
|
|
|
|
|
|
Administrative and Support and Waste Management and Remediation Services
|
|
|
|
|
|
Arts, Entertainment, and Recreation
|
|
|
|
|
|
Mining, Quarrying, and Oil and Gas Extraction
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation and Warehousing
|
|
|
|
|
|
|
|
|
|
|
|
|
Agriculture, Forestry, Fishing and Hunting
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: 2018 data is the most recent information available.
Source: Avenu Insights
172
|
|
173
|
|
Sales Tax Revenue Payers By Industry
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accommodation and Food Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Services (except Public Administration)
|
|
|
|
|
|
|
|
|
|
|
Real Estate and Rental and Leasing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional, Scientific, and Technical Services
|
|
|
|
|
|
|
|
|
|
|
Arts, Entertainment, and Recreation
|
|
|
|
|
|
|
|
|
|
|
Health Care and Social Assistance
|
|
|
|
|
|
|
|
|
|
|
Administrative and Support and Waste Management and Remediation Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Due to confidentially issues, the names of the ten largest revenue payers are not available. The categories
presented are intended to provide alternative information regarding the souces of the City's revenue. The amounts shown are gross collections prior to refunds and collections of amounts due from prior year.
Source: Avenu Insights
174
|
|
175
|
|
Ratio of General Bonded Debt Outstanding
|
|
|
|
|
|
|
|
General Obligations Bonds
|
|
|
Ratio of Net
Bonded Debt to
Assessed
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
Includes all long-term general obligation bonded debt.
(1) State Department of Finance
Source: City Finance Department
176
|
|
177
|
|
Ratio of Outstanding Debt by Type
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of Participation
|
Total Governmental Activities (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
(1) U.S. Department of Commerce Bureau of Economic Analysis. As available, figures and estimates should be used for general purposes only. Estimates are revised periodically to include data that may not have been available at the time. Personal income was used for the base of this calculation. Details can be found in the Demographic and Economic Statistics.
(2) State Department of Finance. Estimates are revised periodically to include data that may not have been available at the time. Population was used for the base of this calculation. Details can be found in the Demographic and Economic Statistics.
(3) Total Governmental Activities and Total Primary Government totals do not include Compensated Absences.
(4) As restated.
Source: City Finance Department
178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Business-Type Activities
|
|
Percentage of Personal Income (1) (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
179
|
|
Direct and Overlapping Debt (1)
2018 - 19 Assessed Valuation
|
|
|
|
Adjusted Assessed Valuation
|
|
|
|
|
|
|
Estimated
Percentage
Applicable (3)
|
Estimated Share
of Overlapping
Debt
|
Overlapping Tax and Assessment Debt
|
|
|
|
Kern Community College District Safety
Repair and Improvement District
|
|
|
|
Kern Community College District School
Facilities Improvement District No. 1
|
|
|
|
Kern High School District
|
|
|
|
Bakersfield City School District
|
|
|
|
Beardsley School District
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fruitvale School District
|
|
|
|
Greenfield Union School District
|
|
|
|
Lakeside Union School District
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Panama-Buena Vista Union School District
|
|
|
|
Rio Bravo-Greeley Union School District
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kern Delta Water District
|
|
|
|
California Statewide Community Development Authority-Community Facilities District No. 2015-02
|
|
|
|
Greenfield Union School District CFD No. 1 & No. 3
|
|
|
|
RNR School Financing Authority
|
|
|
|
Overlapping Tax and Assessment Debt
|
|
|
|
Overlapping General Fund Debt
|
|
|
|
Kern County Certificates of Participation
|
|
|
|
Kern County Pension Obligations
|
|
|
|
Certificates of Participation:
|
|
|
|
Kern County Board of Education
|
|
|
|
Kern County Community College District
|
|
|
|
Kern County Community College District Benefit
|
|
|
|
Kern High School District
|
|
|
|
Panama-Buena Vista Union School District
|
|
|
|
Fairfax School District General Fund Obligations
|
|
|
|
Rio Bravo-Greeley Union School District General Fund Obligations
|
|
|
|
Rosedale Union School District General Fund Obligations
|
|
|
|
Overlapping Tax Increment Debt (Successor Agency)
|
|
|
|
Overlapping General Fund Debt
|
|
|
|
|
|
|
|
|
Notes:
(1) Excluded from this schedule are: (a) all bonds which are not general obligation bonds of the City and (b) general obligation bonds issued for water utility purposes which are payable from Water Fund revenues.
(2) Direct debt is reported net of debt service monies available. Overlapping debt is reported at gross values.
(3) Percentage of overlapping agency's assessed valuation located within boundaries of the City.
Source: California Municipal Statistics, Inc. and City Finance Department
180
|
|
|
|
|
|
|
|
|
|
|
|
City of Bakersfield General Fund Obligations
|
|
|
|
|
|
|
|
|
Total Direct and Overlapping Debt
|
|
|
|
Computation of Legal Debt Margin
June 30, 2019
|
|
|
Legislation does not mandate a debt limit for the City of Bakersfield.
181
|
|
Pledged - Revenue Coverage
Notes:
Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
Operating expenses do not include interest or depreciation expenses.
(1) Includes amounts for connection fees, interest funded in bond issue and principal portion of lease revenues.
(2) Does not include the General Obligation Bonds reported in Enterprise Funds. Operating expenses exclude depreciation expense.
(3) Issued Sewer Revenue Bonds, Series 2007A and 2007B in August of 2007.
(4) Minimum coverage requirement on the Wastewater Revenue bonds is 1.25.
(5) Previous report included arbitrage expenses. Revenue has been corrected.
(6) In addition to the normal debt service amount referenced above, there was a partial bond call of $18,730,000 approved by the City Council to reduce the principal balance of the 2007B bond down to $25 million. Sewer revenue bonds 2007B were refunded in January 2012 (Series 2012A) to change the liquidity provider from Dexia to JP Morgan Chase.
(7) In addition to the normal debt service referenced above, City Council approved partial bond calls of $5 million each year to reduce the principal
balance of Sewer Revenue Bonds Series 2012A.
(8) Partial refunding of Sewer Revenue Bonds Series 2007A in July 2015 (Series 2015A).
(9) Corrected Operating Expenses Amount entered previously entered incorrectly.
Source: City Finance Department
182
|
|
Demographic and Economic Statistics
|
|
|
Personal
Income (2)
(millions)
|
Per Capita
Personal
Income (2)
|
|
Education Level
as a % of
Population having
Formal Schooling (3) (4)
|
Elementary
School
Enrollment
|
Estimated
Unemployment
Rate (%) (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(1) State Department of Finance. Estimates are revised periodically to include data that may not have been available at the time.
(2) U.S. Department of Commerce Bureau of Economic Analysis. As available, figures and estimates should be used for general purposes only. Estimates are revised periodically to include data that may not have been available at the time. Information is for Bakersfield Metropolitan area. Effective 2008-2009 information now includes Delano area.
(3) U.S. Census Bureau estimates as available for Bakersfield Metropolitan area.
(4) This column shows the percent of the City population 25 years and older who are high school graduates or higher.
(5) State of California Employment Development Department (Data shown is for Kern County).
(6) Elementary School Enrollment numbers for 2017-18 restated due to new data collection techniques by the Department of Education.
183
|
|
Principal Employers (1)
Current Year and Nine Years Ago
|
|
|
|
|
|
|
|
Percent
of Total City
Employment
|
|
|
Percent
of Total City
Employment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kern High School District (1)
|
|
|
|
|
|
|
Bakersfield City School District
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Panama-Buena Vista Union School District
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adventist Health Bakersfield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kern County Superintendent of Schools
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Not all employees are employed within the Bakersfield City Limits.
Source: City Finance Department.
Total number of employed persons in Bakersfield provided by EDD Labor Force Data.
Note: Only current data is available.
184
|
|
185
|
|
Full-time Equivalent City Government Employees by Function
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Firefighters and officers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business-type activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
River & Agricultural Water (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.
Source: City Finance Department
186
|
|
187
|
|
Property Value, Construction and Bank Deposits (1)
Notes:
(1) Property value and bank deposits reported in thousands.
(2) Federal Deposit Insurance Corporation
(3) Construction units and values are based on a 12 month calendar year. June 30, 2019 data reflects the 2018 calendar year.
Source: City Finance Department
188
|
|
189
|
|
Operating Indicators by Function
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Street resurfacing (lane miles)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refuse collected (tons/day)
|
|
|
|
|
Recyclables collected (tons/day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Athletic field permits issued
|
|
|
|
|
Community center,
aquatics/sports admissions
|
|
|
|
|
|
|
|
|
|
|
River & Agricultural water (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average daily consumption
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average daily sewage treatment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Departmental name change in FY2018-19 from Domestic & Agricultural Water to River & Agricultural Water.
Source: City Finance Department
190
|
|
191
|
|
Capital Asset Statistics by Function
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Police stations/substations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
River & Agricultural Water (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum daily treatment capacity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
(1) Reported in square miles.
(2) Corrected numbers for all years up to and including FY2011-12 with more accurate information provided.
(3) Departmental name change in FY2018-19 from Domestic & Agricultural water to River & Agricultural water.
Source: City Finance Department
192
|
|
193
|
|
Schedule of Insurance in Force
June 30, 2019
|
|
|
|
Excess Workers' Compensation
|
|
Limit with a $500,000 self-insured retention.
|
|
|
|
Limit with a $1,000,000 self-insured retention.
|
|
|
|
|
|
|
|
Coverage limit, $25,000 deductible.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate limit $50,000 self-insured retention
|
|
|
|
|
|
|
|
|
|
|
|
|
All Risk Property and Boiler
|
|
Coverage on buildings and contents subject to $5,000 deductible with various sublimits.
|
|
|
|
|
|
|
|
|
|
|
|
Coverage for vehicles/equipment values up to $250,000 subject to a $10,000 deductible and vehicles/equipment values about $250,000 subject to a $100,000 deductible
|
|
|
|
|
|
|
|
|
|
|
|
Supervisory & Management employees. Each employee (basic coverage) and additional insurance equal to annual salary to nearest $1,000.
|
|
|
|
Safety employees, each employee (basic coverage).
|
|
|
|
|
|
|
|
Miscellaneous employees, each employee (basic coverage).
|
|
|
|
|
|
|
|
Basic coverage plus (no lifetime maximum)
|
|
|
|
extended benefits of 90% after $750
|
|
|
|
deductible for medical (Blue Shield)
|
|
|
|
or Group dental ($50 deductible for United Concordia).
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: Liability and Physical Loss coverage is provided by the City's Risk Management.
Department. Life and Medical coverage is provided by the City's Human Resource Department.
194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$3.00 per thousand dollar of salary, management & supervisory $2,000 plus annual salary maximum benefit $100,000.
|
|
|
|
|
Safety-$27.30 each permanent employee for $12,000 coverage.
|
|
|
|
|
|
|
|
|
|
Blue/White Collar Units: $68.38 each permanent employee for $30,000 coverage.
|
|
|
|
|
|
|
|
|
|
Bi-weekly rate range from $117.43
|
|
|
|
|
to $643.46 per employee for medical
|
|
|
|
|
based upon individual's plan coverage
|
|
|
|
|
and plan combination and $7.66 to
|
|
|
|
|
$45.52 for dental. $1.27 to $4.67
|
|
|
|
|
$1.59 to $5.84 per employee for
|
|
|
|
|
|
195
|
|
196
|